1. Using direct quotes (in US$) of the respective currencies for Wednesday, please compute the forward premium or discount for the British pound and Switzerland franc for the following:

a. 30-day forward rate

b. 90-day forward rate

c. 180-day forward rate

2. i. Using Indirect Quotes (per US$) of the respective currencies for Wednesday; compute the following cross exchange rates:

a. # of British Pounds per Euro

b. # of Euro per British Pound

c. # of Swiss Francs per British Pound

d. # of British Pounds per Swiss Franc

e. # of Canadian Dollars per Japanese Yen

f. # of Japanese Yen per Canadian Dollar

ii. Using Direct Quotes of the respective currencies, compute the percentage change from Tuesday to Wednesday for the following currencies:

a. Euro

b. British Pound

c. Japanese Yen

*********Please use the quotes (Appendix 1) given below from the WSJ on October 22, 2014 (The quotes given are for Tuesday and Wednesday should be used for answering problems 1 and 2. These quotes are at the end of this problem set. Please who work for each step.

Exchange Rates: New York Closing Snapshot Wednesday, October 22, 2014 U.S. -dollar foreign-exchange rates in late New York IN USS US$ VS %CHG PER USS Wed YTD Wed 0.001713 0.0004870 0 0004892 13.5597 0.15748031 0.0000832 00000834 0.0009489 0 0009482 Exchange Rates: New York Closing Snapshot Wednesday, October 22, 2014 U.S. -dollar foreign-exchange rates in late New York IN USS US$ VS %CHG PER USS Wed YTD Wed 0.001713 0.0004870 0 0004892 13.5597 0.15748031 0.0000832 00000834 0.0009489 0 0009482