1.(4 points) Following are spot ex-rates and forward ex-rates: Spot Rate 6-mo. Forward Rates Swiss Franc (SF/$) SF0.9752/$ 0.9620 UK ($/) $1.3562/ 1.3878 Japan (Yen/$) 112.6050/$ 115.0258 Euro ($/Euro) $1.2046/ 1.2295 Mexico (MXN/$) MXN19.3363/$ 20.0525 1-Year Forward Rates 0.9550 1.4240 118.6050 1.2575 20.5972 a. Based on the Spot ex-rates above, convert $1.0 million (M) into each of the 5 foreign currencies. b. Based on the Spot ex-rates above, calculate the following cross ex-rates: SF/, /, /, MXN/SF, and /MXN. c. Given the Spot ex-rates and the two Forward ex-rates above, calculate the two forward discounts (%) or premiums (%) for each currency, on a %PA or per annum basis, i.e., annualized (for the 6 month premium or discount, multiply by 2 to annualize; for the 1-year rate there is no adjustment necessary). Group each of the five currencies separately, i.e., show the two forward discounts or premiums for the SF, then the UK pound, etc. Quote discounts/premiums to two decimal places (3.45%). d. Using your answer above for the spot rate and the 1-year forward rate from part c: Against each of the five foreign currencies, is the U.S. dollar (USD) expected to appreciate or depreciate over the next year, and by what percentage? Using the ex-rates above, why? Explain each currency in a separate, short essay. 1.(4 points) Following are spot ex-rates and forward ex-rates: Spot Rate 6-mo. Forward Rates Swiss Franc (SF/$) SF0.9752/$ 0.9620 UK ($/) $1.3562/ 1.3878 Japan (Yen/$) 112.6050/$ 115.0258 Euro ($/Euro) $1.2046/ 1.2295 Mexico (MXN/$) MXN19.3363/$ 20.0525 1-Year Forward Rates 0.9550 1.4240 118.6050 1.2575 20.5972 a. Based on the Spot ex-rates above, convert $1.0 million (M) into each of the 5 foreign currencies. b. Based on the Spot ex-rates above, calculate the following cross ex-rates: SF/, /, /, MXN/SF, and /MXN. c. Given the Spot ex-rates and the two Forward ex-rates above, calculate the two forward discounts (%) or premiums (%) for each currency, on a %PA or per annum basis, i.e., annualized (for the 6 month premium or discount, multiply by 2 to annualize; for the 1-year rate there is no adjustment necessary). Group each of the five currencies separately, i.e., show the two forward discounts or premiums for the SF, then the UK pound, etc. Quote discounts/premiums to two decimal places (3.45%). d. Using your answer above for the spot rate and the 1-year forward rate from part c: Against each of the five foreign currencies, is the U.S. dollar (USD) expected to appreciate or depreciate over the next year, and by what percentage? Using the ex-rates above, why? Explain each currency in a separate, short essay