PLEASE HELP! WILL GIVE GREAT REVIEW!

Use what you need of the following set of information to answer the question:

S₀ = $1.1420/ S₀ = 0.7776/$ S₀ = $1.2860/

E (S_{1 (3-months)}) = $1.1280/ F_3-months = $1.1590/

Where: = euro; = British pound; E ( ) = Expected.

1. Do you think there is anything off or not right about the three-month forward rate given above for the euro? If yes, what is off or wrong with it?

(Show all your calculations and explain your work. All currency amount answers should be presented with two decimal places, all currency rates with the same number of decimals they are given, and all rates of change and premiums/discounts with four decimal places)