Using Exhibit 5.7, 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? (Round your answers to 5 decimal places.) Forward premium or discount 13.5 fas EXHIBIT 5.7 Exchange Rates Currencies April 3, 2019 U.S. dollar foreign exchange rates in late New York trading Wed In US$ Per US$ Wed 31.748 23146.3 In US$ 03150 00004 Per US$ 0233 2583 .7493 .001500 .000320 1 ,0520 3034 .02965 42.854 3.8715 1.3345 666.73 3123.6 1 19.220 3.296 33.4300 Country/Currency Americas Argentina peso Brazil real Canada dollar Chile peso Colombia peso Ecuador US dollar Mexico peso Peru new sol Uruguay peso Asia-Pacific Australian dollar 1-mos forward 3-mos forward 6-mos forward China yuan Hong Kong dollar India rupee Indonesia rupiah Japan yen 1-mos forward 3-mos forward 6-mos forward Malaysia ringgit New Zealand dollar Pakistan rupee Philippines peso Singapore dollar South Korea won Taiwan dollar .04372 .1505 1.1233 1.1262 1.1319 1.1407 .00351 .1167 2619 .01533 .1079 1.0018 1.0047 1.0104 1.0193 .1778 1.3158 1.3180 1.3218 1.3277 Country/Currency 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 22.874 6.6452 .8903 8880 8835 8767 284.71 8.5728 3.8183 65.241 9.2695 .9982 .9953 .9897 9811 5.6248 .7600 .7588 .7565 .7532 .7113 .7117 .7125 7139 1490 .1274 201461 .0000703 .00897 .00899 ,00903 ,00910 2452 .6778 .00709 0192 7387 .0008814 .03246 1.4060 1.4051 1.4035 1.4008 6.7114 7.8494 68.425 14223 111.49 111.22 110.70 109.90 4.0790 1.4753 140.47 52.124 1.3537 1134.5 30.812 2.6526 0577 2777 1.4104 3.2854 .00066 2666 .0707 2723 .3770 17.325 3.6016 .7090 3044 1507.50 3.7504 14.146 3.6730 Source: Combled using data from Bloomberg and OANDA online currency converter at www.oanda.com
