The following spot and forward rates for the euro ($feura) were reported:
Spot ............... .........1.6327
30-day forward.........1.6326
90-day forward.........1.6326
180-day forward.......1.6333
a. Was the euro selling at a discount or premium in the forward market?
b. What was the 30-day forward premium (or discount)?
c. What was the 180-day forward premium (or discount)?
d. Suppose you executed a 90-day forward contract to exchange 100,000 euros into Canadian dollars. How many dollars would you get 90 days hence?
e. Assume a French bank entered into a 180-day forward contract with TD Bank to buy $100,000. How many euros will the French bank deliver in six months to get the Canadian dollars?