Japanese Yen Forward. Use the following spot and forward bid-ask rates for the Japanese yen/U.S. dollar (/$) exchange rate from September 16, 2010, to answer the following questions: a. What is the mid-rate quote for each maturity? b. What is the annual forward premium on the yen for all maturities? (Assume that the U.S. dollar is the home currency. Also use the Mid-Rate values computed in part a.) c. Which maturities have the smallest and largest forward premiums? (Click on the icon to import the table into a spreadsheet.) Period spot 1 month 2 months 3 months 6 months 12 months 24 months \/$ Bid Rate 85.08 84.67 84.48 83.95 82.71 82.39 81.34 /$ Ask Rate 85.12 84.70 84.52 83.98 82.76 82.43 81.38 a. What is the mid-rate quote for each maturity? Calculate the mid-rate for each maturity below: (Round to three decimal places.) Bid Rate Days Forward Ask Rate 1$ Mid-rate 1$ \/$ 85.12 0 30 85.08 84.67 84.70 60 84.52 Period Spot 1 month 2 months 3 months 6 months 12 months 24 months 84.48 83.95 82.71 90 180 83.98 82.76 360 82.39 82.43 720 81.34 81.38 b. What is the annual forward premium on the yen for all maturities? (Assume that the U.S. dollar is the home currency.) Calculate the annual forward premium for all maturities below. Use the Mid-Rate values computed in part a. (Round to three decimal places.) Bid Rate Ask Rate Days Forward Forward Premium 1$ WI$ 85.08 85.12 84.70 % 0 30 60 90 84.67 84.48 84.52 Period Spot 1 month 2 months 3 months 6 months 12 months 24 months % 83.95 83.98 % 180 82.71 82.76 % 82.39 82.43 % 360 720 81.34 81.38 % c. Which maturities have the smallest and largest forward premiums? (Select the best choice below.) O A. The 1-month forward rate has the smallest premium, while the 24-month forward possesses the largest premium. B. The 24-month forward rate has the smallest premium, while the 1-month forward possesses the largest premium. OC. The 2-month forward rate has the smallest premium, while the 24-month forward possesses the largest premium. OD. The 12-month forward rate has the smallest premium, while the 6-month forward possesses the largest premium