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Foreign Exchange Quiz Name Forward options and arbitrage quiz {at {bl {a} {b} In the following examples, is the dollar selling at a premium or discount? 90day Forward a} as = 1.1? as = 1.13 s} as = (1.01114 saE = anus c} mars = can some = a 15 a} sass = 1151 am = 1.94 Suppose l = SEA-l It} in New York, $1 = E] LED in Paris, and 1 = 15!) in London. If you begin by holding l pound1 then how could you prot from these exchange rates? Ignoring transaction costs1 what is your arbitrage proIit per pound initially traded? The US. dollar price ofa Swedish krona changes from SI]. 15?? to 3'1] T313. Has the dollar depreciated or appreciated against the krona? Has the krona appreciated or depreciated against the dollar?|