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4. Andreas Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar

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4. Andreas Broszio just started as an analyst for Credit Suisse in Zurich, Switzerland. He receives the following quotes for Swiss francs against the dollar for spot, one-month forward, 3-months forward, and 6-months forward Spot exchange rate SF 1.2575/$ SF 1.2585/S 10 to 15 14 to 22 30 to 20 Bid rate Ask rate One-month forward 3-months forward 6-months forward a. Calculate outright quotes for bid and ask rates, and the spread between bid and ask rates. b. Compute premium/discount on the Swiss franc for each maturity using the average spot and the average forward rate c. What do you notice about the spread as quotes evolve from spot toward six months

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