Spot and forward PHP/USD Bid Ask Period Pips Rate Pips Rate 48

From the spot and 3 month forward rates given in table , it can be seen that the Peso is trading at a premium in forward and hence

1. One month forward rate  

Bid = 48.23 - 40 pips = 48.23 - 0.40 = 47.83

Ask = 48.25 - 34 pips = 48.25- 0.34 = 47.91

(option b is correct)

2. 3 month forward points

Bid = 48.23 - 47.79 = 0.44 or 44 pips

Ask = 48.25 - 47.88 = 0.37 or 37 pips

(option c is correct)

3. the 3 month forward premium for Peso is

apx = (1/47.79 - 1/48.23)/(1/48.23) = 0.0092 or 0.92% (as calculated from Bid rate)

or (1/47.88 - 1/48.25)/(1/48.25) = 0.0077 or 0.77% (as calculated from Ask rate)

4. From the table it can be seen that for Peso, the premium is highest for 6 months forward and lowest for 1 month forward

Hence option "b. 1 month forward; premium; 6 months forward; premium " is correct