In this workout, we're asked to derive the outright forward quotes from the following data.

Basically workouts and forward prices.

Let's look at the data we've been given, we've got the tenor, we've got spot, and then we've got the tenor from spot, which is one week from the spot price, two weeks, three weeks, one month, et cetera.

We've then got a spot price and it's for the US Dollar, Japanese Yen, the spot price 154.50.

We're then given underneath it, mid forward points.

Now these are pips and we'll use them to change the spot price to come up with a forward price.

So we need to fill in this right hand column.

The mid outright quotes or the forward prices.

My spots will just be the same, but what's happens if we're trying to find the forward quote for one week after spots? Well, I need to use the pips to change away from the spot price.

And a quick note here, that one pip in US Dollar Japanese Yen is 1 100th not, 1 10,000th.

Let's see what that means. I'm going to take these pips as quoted, but then divide them by 100.

And what I'll then do is I'll add that onto the spot price and that will now give me a forward price, slightly different from the spot price.

I need to lock onto that spot price, so I'll put some dollar signs around it there we go. And I can see that that forward quote or the outright quote is slightly different from the spot price.

If I select all the cells down here and then copy it down, I'm going to press Ctrl D, but you could use your mouse to just click and then drag it down by grabbing that handle at the bottom.

I can now see that my spot price changes from 1 54.5 to a 12 month forward price of 146.5170.