1. A bank quotes $1.30 per pound for a spot transaction and 1.31 for a one month forward transaction. The payment for the forward contract takes place:

Today

One month later

2. From Jan 2008 to Jan 2009 the Japanese yen to U. S. dollar exchange rate decreased from 107.81 yen per dollar to 90.12 yen per dollar. A U. S. based investor buys a one year yen denominated bond for $2,000 in Jan 2008. One year later the bond provides 1% rate of return in yen. What is the rate of return in dollars?

17.57%

8.92%

-7.92%

-16.57%