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Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S. dollar/euro (US$/) from December 10, 2010, to answer the following
Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U.S. dollar/euro (US$/) from December 10, 2010, to answer the following questions: a. What is the mid-rate for each maturity? b. What is the annual forward premium for all maturities? (Click on the icon to import the table into a spreadsheet.) Period spot 1 month 2 months 3 months 6 months 12 months 24 months Bid Rate 1.3186 1.3184 1.3181 1.3178 1.3170 1.3151 1.3100 Ask Rate 1.3187 1.3185 1.3182 1.3180 1.3172 1.3155 1.3131 a. What is the mid-rate for each maturity? Calculate the mid-rate for each maturity below: (Round to five decimal places.) Bid Rate Ask Rate Mid-rate Days Forward Period US$7 US$/ US$/ Spot 0 1.3186 1.3187
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