An analyst for Credit Suisse in Zurich (Switzerland) receives the following quotes for Swiss franc and Thai baht (both against the dollar), for spot and six-month forward.Spot exchange rate:

franc to dollar SF 1.0875/$

baht to dollar Bt 31.2825/$

Six-month forward (quoted in terms of forward points):

franc to dollar -125 baht to dollar +700

(a) Calculate outright quotes for the six-month forward exchange rate of the franc and baht against the dollar. (b) What is the baht to franc spot exchange rate (answer in terms of baht per franc)? (c) What is the baht to franc six-month forward exchange rate (answer in terms of baht per franc)? (d) Given your answer to part (b) and (c), what is the forward spread for the baht to franc rate? Does this forward spread reflect market expectations for depreciation or appreciation of the Swiss franc (against the Thai baht)?

(e) What is the annualized forward premium for the Swiss franc against the Thai baht?