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10. The following are the exchange rates observed at New York market: Spot 1-Month 3-Month 1-Year UK () $1.4544 $1.4539 $1.4535 $1.4533 Euro () $1.2231

10. The following are the exchange rates observed at New York market:

Spot 1-Month 3-Month 1-Year

UK () $1.4544 $1.4539 $1.4535 $1.4533

Euro () $1.2231 $1.2239 $1.2244 $1.2247

a. What is the forward discount or premium on UK () and Euro () at one month, 3 months, and 12 months? Calculate and list below.

b. Is UK () at forward premium or discount against $? How about ?

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