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show steps please Bid/Ask on Dollar Euro Forwards. Use the following spot and forward bid-ask rates for the US dollar/euro (USS/E) from December 10, 2010,

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Bid/Ask on Dollar Euro Forwards. Use the following spot and forward bid-ask rates for the US dollar/euro (USS/E) from December 10, 2010, to answer the following questions a. What is the mid-rate for each maturity? b. What is the annual forward premium for all maturities? (Click on the icon to import the table into a spreadshoot) Bid Rate Ask Rate spot 1.3214 1.3215 1 month 1.3212 1.3213 2 months 1.3209 1:3210 3 months 13205 1.3207 6 months 1.3197 1:3200 12 months 1.3175 13178 24 months 1.3132 13163 GID a. What is the mid-rate for each maturity? Calculate the mid-rate for each maturity below (Round to five decimal places) Ask Rate Days Forward Bid Rate US$ Period USSIC Period Spot 1 month 2 months 3 months 6 months 0 30 888 180 13214 1.3212 1:3200 13205 1.3197 1:3215 1.3213 1.3210 1:3207 13200 Mid-rate USSI Calculate the mid-rate for each maturity below (Round to five decimal places) Bid Rate Ask Rate Days Forward Mid-rate US$/ Period US$/ US$/ Spot 0 1.3214 1.3215 1 month 30 1.3212 1.3213 2 months 60 1.3209 1.3210 3 months 90 1.3205 1.3207 6 months 180 1.3197 1.3200 12 months 360 1.3175 1.3178 b. What is the annual forward premium for all maturities? Calculate the annual forward premium for all maturities below. (Round to four decimal places) Bid Rate Ask Rate Days Forward Forward Period US$/ US$/ Premium 0 1.3214 1.3215 Spot 1 month 2 months 30 1.3212 1.3213 % 60 1.3209 1.3210 % 3 months 90 1.3205 1.3207 % 6 months 180 1.3197 1.3200 % Bid/Ask on Dollar/Euro Forwards. Use the following spot and forward bid-ask rates for the U. a. What is the mid-rate for each maturity? b. What is the annual forward premium for all maturities? (Click on the icon to import the table into a spreadsheet.) Period spot 1 month 2 months 3 months 6 months 12 months 24 months Bid Rate 1.3214 1.3212 1.3209 1.3205 1.3197 1.3175 1.3132 Ask Rate 1.3215 1.3213 1.3210 1.3207 1.3200 1.3178 1.3163 Days Bid Rate Ask Rate Forward Period Forward US$/ US$/ Premium Spot 0 1.3214 1.3215 1 month 30 1.3212 1.3213 % 2 months 60 1.3209 1.3210 % 3 months 90 1.3205 1.3207 1% 180 6 months 12 months 1 3197 1.3200 % 360 1.3175 1.3178 % 24 months 720 1.3132 1.3163 %

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