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Q: What is the calculation for the forward rate?
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The expected spot rate can be estimated by observing the relevant forward rate. E.g. expected spot rate in 90-days can be estimated by observing the 90-day forward rate.


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How a forward premium or discount is computed?

forward exchange rate can be computed from spot exchange by adding or subtracting premium ir discount. also forward rate can be at forward premiun of discount when comapred to spot exchange rate.


Does currency appreciate or depreciate if the forward rate increases?

If the forward rate increases, it indicates that the currency will depreciate in the future. This is because a higher forward rate implies that the currency will be worth less in the future compared to the present.


What Dynamic balance rate of forward process equals the rate?

The 'Dynamic balance rate' of forward process equals the rate of the backward (reversed) reactionA + B --> P + Q Let the forward rate be RfwandP + Q --> A + B the backward rate let it be RbwthenRfw = Rbw at Dynamic (balanced, thermodynamical) Equilibrium


What happens after equilibrium?

Rate of forward reaction=rate of backward reaction


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A unit rate cannot have a remainder. A unit rate is a ration that has the unit as one and the rate has to be equal. If not, you either did a calculation mistake or the ratio is not a unit rate.


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