Forward and Swap Transcation Prbolems (2 quick questions)

Choose the right answer:

Problem 1: A swap transaction:

(a)Involves a simultaenous sale (or purhcase) of a spot transaction at the spot rate against a forward purchase (or sale) of a forward transaction at a forward rate which is agreed upon today

(b)Involves a simultaenous sale (or purhcase) of a spot transaction at the spot rate against a forward purchase (or sale) at the prevailing market spot rate at the prevailing market spot rate at the forward date.

Problem 2: For a US trader working in the direct quotation between the Euro and Dollar (American term), if the forward price (F$/Euro) is higher than the spot price S($/Euro):

(a)$ is trading at a premium against Euro in the forward market

(b)$ is trading at a discount against Euro in the forward market

(C)Euro is trading at a discount against $ in the forward market

(e) none of the above