American Term European Term 1.1745 0.8514 euro spot 1-month forward 1.1768 0.8498 6-month forward 1.1835 0.8450 (1) Is euro trading at premium or discount vs. USD in the forward market? (2) Calculate 6-month forward premium/discount using American Term (assuming there are 180 days in 6-month). (3) Suppose you long a 6-month forward contract on euro, worth EUR 1,000,000. At the maturity date, the market spot rate is S(USD/EUR)=1.1850. Do you have a profit or loss from the forward transaction? How much is the profit or loss