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Suppose you observe the following exchange rates: 1 = $1.50; 1 = $2.00. Calculate the euro pound exchange rate. O A 1.3333 = 1.00 OB.

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Suppose you observe the following exchange rates: 1 = $1.50; 1 = $2.00. Calculate the euro pound exchange rate. O A 1.3333 = 1.00 OB. 3.00 = 1 OC 1.3333 = 21.00 OD. 1.25 = 1.00 QUESTIONS The SF/$ spot exchange rate is SF1.25/$ and the 180 day forward exchange rate is SF1.30/$. The forward premium (discount) is O A. the dollar trading at an 8% discount to the Swiss franc for delivery in 180 days. OB. the dollar trading at an 8% premium to the Swiss franc for delivery in 180 days. OC the dollar trading at a 4% discount to the Swiss franc for delivery in 180 days. OD. the dollar trading at a 4% premium to the Swiss franc for delivery in 180 days

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