1. The quotations from the Financial Times are shown below for these currencies (10 points). Closing Mid-point Change on day Bid/Offer spread Three months Rate Brazil (R$) Mexico (Peso) 3.5115 11.1800 0.0795 -0.0120 080-150 750-850 3.735 11.3675 (a) What is the cross exchange rate for this transaction (you can use mid-point for calculation) directly quoted for the BRL? (b) What was the prior trading day direct quote for the USD for the Mexican peso? (c) What was the rate of appreciation or depreciation for the BRL (Discrete or continuous calculations are both acceptable)? (d) Is the BRL in forward premium? What is the percentage discount or premium annualized? (e) What is the bid/ask spread for the BRL (%). Would you expect the bid/ask spread to be higher or lower for the U.S. and Mongolian Tugrik? Explain