4. Currently the exchange rate is 50 peso per one dollar. The analysts are predicting that the peso may devalue by 20%. What would be the new exchange rate if the said peso devaluation occurs? 5. (bid-ask) Suppose the direct quote for sterling pound in New York is 1.8110-9. a. What is the direct quote for dollar in London? b. How much would 1,000,000 cost in New York? 6. (cross rate) The S/ exchange rate is $1.35/, and the E/SF exchange rate is 0.61/SF. What is the SF/S exchange rate? 7. (forward rate) The spot and 90-day forward exchange rates for Euro is $1.3480 and $1.3500, respectively. a. Is the dollar or euro at a forward premium? b. What is the net annualized forward premium on euro? c. What is the net annualized forward premium on dollar