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Using the information below to calculate the three-, and six-month forward premium or discount for US Dollar versus the British Pound using European term quotations.
Using the information below to calculate the three-, and six-month forward premium or discount for US Dollar versus the British Pound using European term quotations. Assume each month has 30 days.
UK Pound in US$ per US$
Spot 1.1405 .8768
1-mos forward 1.1402 .8770
3-mos forward 1.1396 .8775
6-mos forward 1.1389 .8780
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