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5) Calculate the annual forward premium for the foreign currency using the following time intervals 1 week, 2 weeks, 1 month, 2 months 3 months

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5) Calculate the annual forward premium for the foreign currency using the following time intervals 1 week, 2 weeks, 1 month, 2 months 3 months and 6 months. Identify the direction for the foreign currency and compare to the average forecast reported above Days 7 14 30 USDCHF SW FWD USDCHF2W FWD USDCHF 1M FWD $ USDCHF 2M FWD USDCHF 3M FWD USDCHF 6M FWD -1.85 -4.06 -8.45 -17.52 -25.98 -52.69 -1.75 -3.81 -8.2 - 17.07 -25.38 -51.49 -1.8 3.935 -8.325 - 17.295 -25.68 -52.09 F 0.9522 0.9520 0.9516 0.9507 0.9498 0.9472 annualized F/S-1 annualized -0.97% 0.97% -1.06% 1.06% -1.05% 1.05N - 1.09% 1.09% -1.08% 1.08% - 1.09% 1.10% 60 90 180 USD/CHE 0.9523 0.9525 0.9524 6) Compare the annualized forward premium calculated with short intervals to the one year number. Are the numbers similar? Is there a pattern? What could be the causes for the difference? 5) Calculate the annual forward premium for the foreign currency using the following time intervals 1 week, 2 weeks, 1 month, 2 months 3 months and 6 months. Identify the direction for the foreign currency and compare to the average forecast reported above Days 7 14 30 USDCHF SW FWD USDCHF2W FWD USDCHF 1M FWD $ USDCHF 2M FWD USDCHF 3M FWD USDCHF 6M FWD -1.85 -4.06 -8.45 -17.52 -25.98 -52.69 -1.75 -3.81 -8.2 - 17.07 -25.38 -51.49 -1.8 3.935 -8.325 - 17.295 -25.68 -52.09 F 0.9522 0.9520 0.9516 0.9507 0.9498 0.9472 annualized F/S-1 annualized -0.97% 0.97% -1.06% 1.06% -1.05% 1.05N - 1.09% 1.09% -1.08% 1.08% - 1.09% 1.10% 60 90 180 USD/CHE 0.9523 0.9525 0.9524 6) Compare the annualized forward premium calculated with short intervals to the one year number. Are the numbers similar? Is there a pattern? What could be the causes for the difference

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