3. Compute the bid/ask percentage spread for Mexican peso retail transactions in which the ask rate is $.0806 and the bid rate is $.0777.

4. You observe following exchange rate quotations: $1 is equal to 6.5321 Chinese yuan 1 Japanese yen equal to 0.0610 Chinese yuan. How many U.S. dollars will you need to purchase 1 billion Japanese yen?

5. One year ago, you bought a put option on 200,000 euros with an expiration date of one year. You paid a premium on the put option of $.04 per unit. The exercise price was $1.31. Assume that one year ago, the spot rate of the euro was $1.29, the one-year forward rate exhibited a discount of 2%, and the one-year futures price was the same as the one-year forward rate. From one year ago to today, the euro depreciated against the dollar by 3 percent. Today the put option will be