S 0 C$$ is quoted as C$1.2340$ Bid and C$1.2350$ Ask. The six-month forward rate F 1

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S0 C$∕$ is quoted as “C$1.2340∕$ Bid and C$1.2350∕$ Ask.” The six-month forward rate F1 C$∕$ is quoted as “C$1.2382∕$ Bid and C$1.2397∕$ Ask.” Assume you reside in the United States. Calculate forward quotes for the Canadian dollar as an annual percentage premium or discount. Would a trader in Canada get a different answer if asked to calculate the annual percentage premium or discount on the U.S. dollar? Why?

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