You have called your foreign exchange trader and asked for quotation on the spot,

$1$

$-$

month,

$3$

$-$

month and

$6$

$-$

month forward rate. The trader has responded with the following

$

$0$

$.$

$3$

$4$

$7$

$6$

$/$

$8$

$0$

$,$

$3$

$5$

$,$

$8$

$/$

$7$

$,$

$1$

$3$

$1$

$0$

a

$)$

$$What does this mean in terms of dollars per Euros?

b

$)$

$$If you wished to buy spot Euros, how much would you pay in Dollars?

c

$)$

$$If you wanted to purchase spot USD, how much would you have to pay in Euro?

d

$)$

$$What is the premium or discount in the

$1$

$,$

$3$

$,$

$6$

$$month forward rate in annual

percentage?