4. Which currencies are at a dollar discount, and which are at a dollar premium? What are the outright forward rates for the pound? For the French franc? Using the midpoints of bid-ask spreads, what are the forward premium or discounts on an annualized percentage basis for both these currencies?

Exhibit 1 Spot and Forward Exchange Rates Spot 1 Month 3 Months 6 Months 12 Months Currency Sterlinga 1.4890/00 55/52 160/156 302/289 560/523 Deutsche mark 2.0310/20 22/18 64/54 128/105 277/228 French Franc 6.6575/625 73/86 263/296 505/590 1194/1351 Yen 154.20/30 8/6 33/27 75/62 164/137 SDRA 1.2141/43 5/3 12/8 18/11 24/12 aU.S. dollars per unit of currency. Exhibit 1 Spot and Forward Exchange Rates Spot 1 Month 3 Months 6 Months 12 Months Currency Sterlinga 1.4890/00 55/52 160/156 302/289 560/523 Deutsche mark 2.0310/20 22/18 64/54 128/105 277/228 French Franc 6.6575/625 73/86 263/296 505/590 1194/1351 Yen 154.20/30 8/6 33/27 75/62 164/137 SDRA 1.2141/43 5/3 12/8 18/11 24/12 aU.S. dollars per unit of currency