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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

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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$/) from December 10, 2010, to answer the following questions: a. What is the mid-rate for each maturity? b. What is the annual forward premium for all maturities? (Click on the icon to import the table into a spreadsheet.) Period spot 1 month 2 months 3 months 6 months 12 months Bid Rate 1.3257 1.3255 1.3252 1.3249 1.3241 1.3219 Ask Rate D 1.3258 1.3256 1.3253 1.3251 1.3243 1.3222 C. a. What is the mid-rate for each maturity? Calculate the mid-rate for each maturity below: (Round to five decimal places.) Bid Rate Ask Rate Mid-rate Days Forward Period US$/ US$/ US$/ Spot 0 1.3257 1.3258

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