Traders quotes or different than the informal way currency are quoted; as discussed in the lecture, it is actually the exact opposite. If a trader's quote was USD/EUR 0.8214, the informal quote would be EUR0.8214/$ or 0.8214/$. They both mean the same thing, in this example, 1 dollar buys 0.8214 euro.

a) Give the traders quote for AUD and the US dollar, how would you see the informal quote written? (for both Currencies)

B) Looking at the EUR/USD forward rates, is the euro selling at a premium or discount? Why do you think that is? Does this mean the dollar is selling at a premium or discount?