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Using Exhibit 5.4, calculate the one-, three-, and six-month forward premium or discount for the U.S. dollar versus the British pound using European term quotations.

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Using Exhibit 5.4, calculate the one-, three-, and six-month forward premium or discount for the U.S. dollar versus the British pound using European term quotations. For simplicity, assume each month has 30 days. What is the interpretation of your results? Mon Country/currency Per US$ in US$ .02832 .00004500 35,420 22220 Chile peso Currencies May 16, 2016 U.S. dollar foreign exchange rates in late New York trading Mon in US$ Per US$ Country/currency Americas .0708 14.134 Argentina peso Brazil real 2856 3.5014 Canada dollar .7755 1.2895 .001440 694.28 Colombia peso .000330 3028.50 Ecuador US dollar 1 1 Mexico peso 0546 18.306 Peru new sol 3003 3.330 Uruguay peso .03242 30.8450 Venezuela b. fuerte .100125 9.9875 Asia-Pacific Australian dollar .7289 1.3720 1-mos forward .7280 1.3737 3-mos forward .7264 1.3767 6-mos forward .7242 1.3809 China yuan .1534 6.5205 Hong Kong dollar .1288 7.7637 01497 66.805 Indonesia rupiah .0000751 13310 Japan yen .009172 109.03 1-mos forward .009179 108.94 3-mos forward .009198 108.72 6-mos forward 009230 108.34 Malaysia ringgit 2483 4.0273 New Zealand dollar 6759 1.4795 .00956 104.60 Philippines peso 0215 46.450 Singapore dollar .7302 1.3695 South Korea won .0008477 1179.66 Taiwan dollar 03064 32.642 Thailand baht Vietnam dong Europe Czech Rep, koruna Denmark krone Euro area euro 1-mos forward 3. mos forward 6-mos forward Hungary forint Norway Krone Poland zloty Russia ruble Sweden krona Switzerland franc 1-mos forward 3-mos forward 6-mos forward Turkey lira UK pound 1-mos forward 3-mos forward 6-mos forward Middle East/Africa Bahrain dinar Egypt pound Israel shekel Jordan dinar Kuwait dinar Lebanon pound Saudi Arabia riyal South Africa rand UAE dirham 04186 .1520 1.1321 1.1331 1.1353 1.1389 003593 1224 2570 ,01527 .1211 1.0229 1.0242 1.0270 1.0318 3371 1.4402 1.4403 1.4407 1.4416 23.889 6.5795 8833 8825 8808 8780 278.30 8.1232 3.8915 65.482 8.2610 19776 19764 9737 9692 2.9667 6944 6943 6941 6937 India rupee Pakistan rupee 2.6523 1133 2617 1.4097 3.3141 0006636 .2666 .0650 2723 3770 8.8298 3.8210 .7094 3017 1507.00 3.7503 15.3900 3.6729 Sources Compled from Bloomberg data. May 16, 2016 and form

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