Required: Paul Spiro is an analyst for a macro hedge fund based in London. He notices the following information for the GBP/EUR exchange rate: Spot (Bid) Spot (Ask) GBP/EUR1.1550 GBP/EUR1.1650 8 To 11 (basis points) 1m Forward 3m Forward 12 To 15 (basis points) 6m Forward 17 To 20 (basis points) a) Calculate outright quotes for bid and ask for the forward rates and the number of points spread for the spot rate and all forward rates (5 marks) b) What pattern do you notice as you move to higher levels of maturity in the forward market? What does this indicate? (5 marks)