Chapter 5 Forward Contracts: 1) Given the following spot rate on 2-18-19 EUR:USD = $1.131 GBP:USD = $1.2919 MXN:USD = $0.0520 BRL:USD = $0.2678 a) Find the annualized premium today for 1 yr Forward Rates (mature on 2-18-20) EUR:USD $1.168 GBP:USD $1.3135 MXN:USD = $0.04886 BRL:USD = $0.2618 a. EUR = b. GBP (Interest Rates on the Euro and GBP are lower than interest rates on the US Dollar) C. MXN = d. BRL = (Interest Rates on the MXN and BRL are higher than interest rates on the US Dollar) 2) Assume on 5-1-19 What will the 6-month What will the 1 yr the following spot rates: Forward rate be? Forward rate be? EUR:USD = $1.10 EUR:USD EUR:USD GBP:USD = $1.42 GBP:USD GBP:USD MXN:USD = $0.072 MXN:USD = MXN:USD = BRL:USD = $0.245 BRL:USD BRL:USD = (Assume the annualized Premium has not changed: Use the annualized premium from 1:a))