Question 1 (a) A bank is quoting the following exchange rates against the U.S dollar for the Singaporean dollar and the Australian dollar (assume that US dollar is the home currency): SS/USS = 0.7086-96 AS/US$ = 0.7635-45 An Australian firm asks the bank for a S$/A$ quote. Calculate the cross-rate the bank would quote. (5 marks) (b) The spot dollar to pound exchange rate is S/f = 1.4570-1.4576. The six-month forward dollar to pound exchange rate is S/f = 1.4408-1.4434. Compute the annualized forward discount or premium on the pound relative to the dollar. (5 marks) (c) The Asian financial crisis showed that a currency crisis could affect interest rate. Briefly explain the effect of the crisis to Asian interest rates and its pressure on US interest rates. (15 marks)