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Part-A Suppose over the last decade the volatility of USD/CAD (USA dollar/Canadian dollar) kept decreasing, what would have happened to its bid-ask spread? Explain your

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Part-A Suppose over the last decade the volatility of USD/CAD (USA dollar/Canadian dollar) kept decreasing, what would have happened to its bid-ask spread? Explain your answer with reasoning. Part-B An investor wishes to buy euros spot (at $1.3908) and sell euros forward for 180 days (at $1.3996). Is there any premium on 180-day Euro or is there any discount on 180-day forward? Show your workings. Part-C Suppose the direct quote of pound against USD in New York is 1.8110-5. What is the direct quote for dollars in London

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