2 Hours 1. (6 points) Use the following spot and forward bid-ask rates for the European Buro/U.S. dollar (/S) exchange rate from May 28, 2014, to answer the following questions: Period e/$ Bid Rate e/s Ask Rate spot 0,734 0,738 I month 0,739 0,741 2 months 0,736 0,739 3 months 0,743 0,746 6 months 0,746 0,748 12 months 0,754 0,750 0,758 24 months 0,756 a. What is the mid-rate for each maturity? b. What is the annual forward premium for all maturities? c. Which maturities have the smallest and largest forward premiums