Suppose you open the newspaper today and observe the following indirect exchange rate quotations for the British pound (relative to the U.S. dollar, In European terms): Is the British pound selling at a premium or a discount in the forward market? Discount Premium Suppose you make a pound 500,000 sale to a British customer who has 60 days to pay you in cash. The customer will pay you in British pounds, but your company is based in the United States, so you are most concerned with the dollar value of the payment. If the customer pays you pound 500,000 today, how much is that worth in dollars? $940,132 $943,637 $946,468 $949,307 $952,165 Assume that the forward market is correct and the 60-day forward exchange rate quoted in the newspaper today is the spot exchange rate 60 days from now. If the customer waits the full 60 days and pays you pound 500,000, how much have you lost (in dollar terms) due to exchange rate fluctuations? $6,562 $3,834 $4,418 $5,733 $7,158