The spot euro is quoted $0.9644/. A forward rate of $1.0416/ is closest to a

(a) 6.00% premium.

(b) 6.00% discount.

(c) 8.00% premium.

(d) 8.00% discount.

(e) None of the above

Given exchange rate between Euro and US dollar as 0.7067/$, which is the US dollar value of Euro? If you are a European is the quoted price of 0.7067/$ a direct or indirect quote?

(a) 0.7067/$; direct

(b) 0.7067/$; indirect

(c) $1.4150/; direct

(d) $1.4150/; indirect

(e) none of the above