2. Basel Trading. You receive the following quotes for Swiss francs against the dollar for spot, one-month forward, three-months forward, and six-months forward. 1.2575 to 1.2585, 10 to 15, 14 to 22, 20 to 30.

a. Calculate the outright quotes for bid and ask, and the number of points spread between each.

b. What do you notice about the spread as quotes evolve from spot toward six months?