The following are the quoted rates against the USD:

Quoted

180-day

Forward

Spot rate

rate

GBP/USD =

1.3000

1.3083

USD/EUR =

0.8585

0.8495

(Note: GBP/USD means one GBP expressed in terms of USD)

REQUIRED:

a. Compute the GBP/EUR cross rate for the spot and 180-day forward rates

b. Compute the annualized percentage premium or discount for the following :

iGBP over USD

iiEUR over USD

iiiUSD over GBP

ivUSD over EUR

vEUR over GBP

viGBP over EUR

(eg. for GBP over USD, is GBP a premium or discount over the USD?}