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

Using Table below to 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?

Country/currency

in US $

Per US$

UK pound

1.4402

0.6944

1-mos forward

1.4403

0.6943

3-mos forward

1.4407

0.6941

6-mos forward

1.4416

0.6937

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