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4. Suppose S($/) = 1.3771, F($/) = 1.3821, Fa($/) = 1.3921, and Fe($/)=1.4071. Compute the one, three, and six month forward premium or discount

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4. Suppose S($/) = 1.3771, F($/) = 1.3821, Fa($/) = 1.3921, and Fe($/)=1.4071. Compute the one, three, and six month forward premium or discount for the pound ver- sus the dollar. For simplicity, assume each month has 30 days. What is the interpretation of your results?

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