Use the table to answer following question(s).

				/$		/$
Period		Days Forward		Bid Rate		Ask Rate
spot				85.41		85.46
1 month		30		85.02		85.05
2 months		60		84.86		84.90
3 months		90		84.37		84.42
6 months		180		83.17		83.20
12 months		360		82.87		82.91
24 months		720		81.79		81.82

1. Refer to the above Table. According to the information provided in the table, the 6-month yen is selling at a forward ________ of approximately ________ per annum. (Use MID RATES to make your calculations.)

Forward premium = ( Spot - Forward ) / (Forward) x (360 / days)

A.premium; 5.41%

B.premium; 2.22%

C.premium; 2.09%

D.discount; 5.41%

Use the table to answer following question(s).

	/$ (Mid Rate)	/$ (Bid Rate)	/$ (Ask Rate)
spot	85.435	85.41	85.46
1 month	85.035	85.02	85.05
2 months	84.880	84.86	84.90
3 months	84.395	84.37	84.42
6 months	83.185	83.17	83.20
12 months	82.890	82.87	82.91
24 months	81.805	81.79	81.82

2. Refer to the above Table. The current spot rate of dollars per pound as quoted in a newspaper is ________ or ________.

A.84.880/$; $0.0118/

B.85.435/$; $0.0117/

C.81.805/$; $0.0122/

D.85.035/$; $0.0118/