Assume that interest rate parity holds and that 90-day risk-free securities yield a nominal annual rate of 3% in the United States and a nominal annual rate of 3.6% in the United Kingdom. In the spot market, 1 pound = $1.2.

1. What is the 90-day forward rate? Do not round intermediate calculations. Round your answer to the four decimal places.

   $

2. Is the 90-day forward rate trading at a premium or a discount relative to the spot rate?

   -Select-PremiumDiscount