1.Interest rates in the interbank Eurocurrency money markets are quoted on an annualized simple interest basis, using a fictitious 360-day year. The actual amount of interest received on a deposit (or paid on a loan) is, where is the quoted rate, and N is the number of calendar days spanned by the deposit or loan.The corresponding formulas for annual effective yields and continuously compounded interest rates are

Effective yields:

continuously compounded rates:

Six-month (182-day) LIBOR rates for U.S. dollars and euros were quoted at 0.15% and

-0.53% per year, respectively (simple interest) on September 14 (yes, that is a negative interest rate for euros!), while the spot rate was 1.1817 $/euro.Given this, what is the six-month $/euro forward rate?