Listen Use the following spot and forward bid-ask rates for the U.S. dollar/Australian dollar (US$-A$1.00) exchange rate from December 10, 2010, to answer the following questions Period spot 1 month 2 months 3 months 6 months 12 months 24 months USS/AS Bid Rate 0.98571 0.98635 0.97745 0.97397 0.96486 0.93960 0.89770 USS/AS Ask Rate 0.98837 0.99374 0.97786 0.97441 0.96365 0.94045 0.89900 What is the annual forward premium for 6-month rate? **For your answer, round to 5 decimals and do not use % terminology. if you result is -0.067948 then enter -0.00679. (** the system has a margin of error to capture rounding differences. if your answer is outside of that range answer marked incorrectly even if the procedure followed here is utilized, please contact instructor for a grade by hand alternative).

Use the foliowing spot and forward bid-ask rates for the U.S. dollar/Australian dollar (US\$-A\$1.00) exchange rate from December 10,2010, to answer the following questions What is the annual forward premium for 6 -month rate? * For your answer, round t05 decimals and do nor use % terminologe; if you result is -0.067948 then enter -0.00679 , 8 "t the sitem has a margin of errer to capture rownding differencel. if your answer is eutside of that range-answrr marked incerrwctly even if the procedure followed here is wethied, please comsact invtructar for a grade by hand alternativel