$ SKr DKr 1. Here are some quotes for spot exchange rates & three-month interest rates:

Spot exchange rates:

$: 1.18651.1870

:$ 108.10108.20

Interest rates:

Three-month euro-$ 551/4

Three-month euro- 31/431/2

Three-month euro- 11/411/2

Calculate the quotes for questions a, b, c below:

Hint: calculate the bid & ask for each one (show calculations) and explain it.

a. The : spot exchange rate? Please briefly explain your answer.

b. The :$ three-month forward exchange rate? Please briefly explain your answer.

c. The : three-month forward exchange rate? Please briefly explain your answer.