Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the US dollarleuro (USS/E) 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? c. Which maturities have the smallest and largest forward premiums? (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 1.3207 1.3205 1.3202 1.3198 1.3190 1.3169 1.3126 Ask Rate 1.3208 1.3206 1.3203 1.3201 1.3193 1.3172 1.3157 b. What is the annual forward premium for all maturities? Calculate the annual forward premium for all maturities below. (Round to four decimal places.) Days Forward Bid Rate USSIE Forward Premium Period Spot 1 month 2 months Ask Rate USSIE 1.3208 1.3206 1.3203 1.3201 1.3193 1.3172 1.3157 1.3207 1.3205 1.3202 1.3198 1.3190 1.3169 1.3126 3 months 6 months 12 months 24 months 720 c. Which maturities have the smallest and largest forward premiums? (Select the best choice below.) O A The 2-month forward rate has the smallest premium, while the 24-month Jorward possesses the largest premium OB. The 24-month forward rate has the smallest premium, while the 1-month forward possesses the largest premium OC The 12 month forward rate has the smallest premium, while the 6-month forward possesses the largest premium OD. The 1-month forward rate has the smallest premium, while the 12 month forward possesses the largest premium Enter any number in the edit fields and then continue to the next