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The spot exchange rate between the British pound and the dollar today is 0.7440/$. The British pound three-month forward rate is quoted at 6.9600% discount.

  1. The spot exchange rate between the British pound and the dollar today is 0.7440/$. The British pound three-month forward rate is quoted at 6.9600% discount.
    1. What is the outright 3-month forward rate of the British pound in terms of the dollar?
    2. What is the outright 3-month forward rate of the dollar in terms of the British pound?
    3. At what premium/discount would the three-month dollar forward be quoted?

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