Use the exchange rates in the table to answer the questions. Euro American Term (direct) European Term (indirect) Spot 1.1725 0.8529 1-month forward 1.1785 0.8485 3-month forward 1.1812 0.8466 (1) Is Euro trading at premium or discount vs. USD in the forward market? (2) Calculate the 1-month forward premium/discount using European Term (30 days). (3) Suppose you short a 3-month forward contract on Euro, worth Euro 1,000,000 at the above forward rate. At maturity date, you check the spot exchange rate, S(USD/ EUR)=1.1834. State your profit (or loss) in USD from your forward position at the maturity date