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Problem 5 . 8 Required: Using Exhibit 5 . 7 , calculate the one - , three - , and six - month forward premium
Problem
Required:
Using Exhibit calculate the one three and sixmonth forward premium or discount for the US dollar versus the British pound
using European term quotations. For simplicity, assume each month has days. What is the interpretation of your results?
Note: Round your answers to decimal places.
Exhibit
Exchange Rates
tableNew Zealand dollar,Philippines peso,Singapore dollar,South Korea won,Taiwan dollar,Thailand baht,Vietnam dong,EuropeCzech Rep. koruna,Denmark krone,Euro area euro,mos forward,mos forward,mos forward,Hungary forint,Norway krone,Poland zloty,Russia ruble,Sweden krona,Switzerland franc,mos forward,mos forward,mos forward,Turkey lira,UK pound,mos forward,mos forward,mos forward,tableMiddle EastAfricaBahrain dinar,,Bahrain dinar,Egypt pound,Israel shekel,Jordan dinar,
tableEuropeCzech Rep. koruna,Denmark krone,Euro area euro,mos forward,mos forward,mos forward,Hungary forint,Norway krone,Poland zloty,Russia ruble,Sweden krona,Switzerland franc,mos forward,mos forward,mos forward,Turkey lira,UK pound,mos forward,mos forward,mos forward,Middle EastAfricaBahrain dinar,Egypt pound,Israel shekel,Jordan dinar,Kuwait dinar,Nigeria naira,Saudi Arabia riyal,South Africa rand,UAE dirham,
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