S₀ = $1.2314/ S₀ = 0.9278/$ S₀ = $1.0778/

E (S_{1 (3-months)}) = $1.1980/ F_3-months = $1.2680/

If you have $38,400,000 how many pounds would you be able to buy for 3-month delivery given the above exchange rates? (Assume no bid/ask spread)

If one year ago the spot price of euro in terms of the $ was $1.1562/. Do you think the euro has appreciated or depreciated against the dollar over the last year (explain answer without any calculations)? What was the percentage rate of change in the value of the euro over the last year? Is your numerical answer consistent with your explanation?