5. Suppose you collected data on global financial markets as the following TablesTable 1, 2 and 3. You will answer the following questions using these data.

1. As of 10:20 am, Oct. 16, was the UK pound for June 2021 delivery traded at forward premium or discount?

2. How you think the UK pound to be appreciated or depreciated by the end of 2021? Explain why referring to the data table.

3. If you have $1 million available until June 2021, where do you want to invest? Explain why.

4. For more accurate decision for Q.5c, what kinds of more data do you think you will need to collect?Table 1

Spot Exchange Rates 10:20 AM EDT 10/16/20

	spot FX rates change				%CHG
Euro (EUR/USD)		1.1721	0.0012	0.10
Japanese Yen (USD/JPY)		105.41	-0.04	-0.04
U.K. Pound (GBP/USD)		1.2910	0.0021	0.16
Swiss Franc (USD/CHF)		0.9147	0.0002	0.02
Chinese Yuan (USD/CNY)		6.6971	-0.0283	-0.42
Canadian $ (USD/CAD)		1.3193	-0.0034	-0.26
Mexican Peso (USD/MXN)		21.1742	-0.1026	-0.48
Bitcoin (BTC/USD)		11329	-214	-1.86
WSJ Dollar Index		88.58	-0.10	-0.11
U.S. Dollar Index		93.69	-0.17	-0.18

Table 2

Government Bonds10:20 AM EDT 10/16/20

10-year bonds.

COUNTRY	YIELD(%)	YIELD CHG
U.S.	0.738	0.001
Germany	-0.627	-0.020
U.K.	0.173	-0.008
Japan	0.023	-0.002
Australia	0.734	-0.043
China	3.251	0.000

Table 3

Contracts [currency futures], 10:20 am, Oct. 16, 2020

British Pound (CME)

MONTH	LAST	CHG	OPEN	HIGH	LOW	DATE	TIME
Front Month	1.2925	0.0024	1.2908	1.2961	1.2859	10/16/20	9:27
British Pound Oct 2020	1.2925	0.0024	1.2908	1.2961	1.2859	10/16/20	9:27
British Pound Nov 2020	1.2914	0.0011	1.2902	1.2953	1.2869	10/16/20	9:25
British Pound Dec 2020	1.2926	0.0022	1.2908	1.2965	1.2856	10/16/20	9:27
British Pound Jan 2021	1.2925	0.0016	1.2908	1.2968	1.2874	10/16/20	9:24
British Pound Mar 2021	1.2934	0.0023	1.2928	1.2971	1.2868	10/16/20	9:27
British Pound Jun 2021	1.2928	0.0010	1.2908	1.2964	1.2890	10/16/20	9:19
British Pound Sep 2021	1.2944	0.0020	1.2985	1.2976	1.2911	10/16/20	9:27
British Pound Dec 2021	1.2948	0.0017	1.2987	1.2978	1.2922	10/16/20	8:07