Suppose 90-day investments in Britain have a 5% annualized return and a 1.25% quarterly (90-day) return. In the U.S., 90-day investments of similar risk have a 7% annualized return and a 1.75% quarterly (90-day) return. In today's 90-day forward market, 1 (euro) equals $1.32. If interest rate parity holds,

What is the forward rate premium or discount percent? [X.XXXX - to 4-decimal place]