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?

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Period	/$ Bid Rate	/$ Ask Rate
spot	90.05	90.09
1 month	89.65	89.70
2 months	89.49	89.53
3 months	89.02	89.06
6 months	87.84	87.87
12 months	87.50	87.54
24 months	86.43	86.47