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Using the following data, answer the following questions: Spot 1 = $1.4529 30day forward: 1 = $1.4511 90day forward: 1 = $1.4498 180day forward: 1

Using the following data, answer the following questions: Spot 1 = $1.4529

30day forward: 1 = $1.4511

90day forward: 1 = $1.4498

180day forward: 1 = $1.4487

  • How much would 1,750,000 cost in dollars?
  • Is the British pound expected to appreciate or depreciate over the next 6 months?
  • What is the 180-day forward premium or discount for the British pound?

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