1. You observe following exchange rate quotations: 1 is equal to $1.558 and 1 euro equal to 1.29 dollar. How many pounds will you need to purchase 125 million euros? 2. The 180-day forward rate of the US dollar is quoted at JPY 77.7, and the spot rate of the US dollar is quoted at JPY 78.5. The forward is present premium (or discount) at what percent? 3. Assume the current spot rate of the euro is $1.30 and the forward rate for the euro is $1.32, while the annualized forward premium of the euro is 3.03%. How many days is the forward contract? 4. Bulldog, Inc., has bought British pound call options at a premium of $.015 per unit, and an exercise price of $1.561 per unit. It has forecasted the Australian dollars lowest level over the period of concern as $ 1.569, $1.570, $1.567, $1.568 and $1.571. Determine the net profit (or loss) per unit to Bulldog, Inc., if each Australia dollar each level occurs (show detailed analysis; follow the five steps in the teaching notes)