Suppose that you observe the following spot exchange rates and three forward exchange rates (30-day, 90-day, and 180-day) between the British pound () and the U.S. dollar ($):

S($/) = 1.4402, S(/$) = 0.6944

F30 ($/) = 1.4403, F30 (/$) = 0.6943

F90 ($/) = 1.4407, F90 (/$) = 0.6941

F180 ($/) = 1.4416, F180 (/$) = 0.6937

a. Is the British pound trading at forward premium or forward discount relative to the U.S. dollar?

b. Calculate the forward premium or discount for the British pound using the 180-day forward exchange rate.