Wednesday

Tuesday

$\backslash$table$[[,\mathrm{.}6598,\mathrm{.}6590],[$Switzertand $($Franc$),\mathrm{.}6592,\mathrm{.}6585],[30-$day Forward,$\mathrm{.}6585,\mathrm{.}6578],[90$ day Fonvard,$\mathrm{.}6577,\mathrm{.}6572],[180$ day Forward,,$]]$

a$.(5pts)$ Reter to Table $1.$ On Wednesday, the $90-$day forward franc was selling at a discount or premium?

b$.(10pts)$ Refer to Tabic $1$ above, If you were an importer in US who anticipates that spot rate of the frane in three menths will be higher than today's $3-$month forward rate. You had $10,000$ Francs to pay in three reonths, what would you, as a cautious businessperson, do to minimize your risk? $($Note: You do not have possibitity of options or other derivatives.$)$