1. What is the spot rate for the British pound (GBP) on Wednesday in terms of the U.S. dollar (USD)? Or, from the U.S. perspective, what is the direct quote on pounds?) The spot rate for British pound on Wednesday in terms of U.S dollar is 1 USD= 0.773 GBP

2. What is the spot price for the USD on Wednesday in terms of the Swiss franc (CHF)? (Or, from the U.S. perspective, what is the indirect rate on Swiss francs?)

The spot rate for the dollar on Wednesday in terms of Swiss francs is 1 USD=1.0021 CHF

3. Using your answers from #1 and #2 above, calculate the cross rate of exchange between the British pound (GBP) and the Swiss franc (CHF) (need to see your math).

0.773/1.0021

1 GBP= 0.7713801 CHF

4. Calculate the annualized forward premium or discount on six-month forward yen (need to see your math).

5. Based on your answer to #4 above, if you are planning to go to Japan in 6 months, should you buy your yen today? Why or why not?