The expected exchange rate for the next month for GBP is $1.30 per pound. The conditional volatility is 0.05. What is the interval that contains 95% of the possible future spot rates?

• 1.20 - 1.40
• 1.30 - 1.50
• 1.25 - 1.35
• O 1.10 - 1.30

The current spot rate is $1.10 per euro. The expected rate of change over the next month is -0.5% (euro expected to depreciate by half a percent). The standard deviation of the rate of change is 2%. What is the conditional volatility for the euro?

0.022

O 0.01

0.011

0.012

The bid and ask quotes for euros is 1.12 - 1.14 dollars per euro.

The bid and ask quotes for yen are 125 - 127 yen per dollar.

Based on these quotes how many yen will it take to buy an euro?