Table gives hypothetical dollar/franc exchange values for Wednesday, May 5, 2008.

a. Fill in the last two columns of the table with the reciprocal price of the dollar in terms of the franc.

b. On Wednesday, the spot price of the two currencies was ______ dollars per franc, or ______francs per dollar.

c. From Tuesday to Wednesday, in the spot market the dollar (appreciated/depreciated) against the franc; the franc (appreciated/ depreciated) against the dollar.

d. In Wednesday’s spot market, the cost of buying 100 francs was ______dollars; the cost of buying 100 dollars was ______francs.

e. On Wednesday, the 30-day forward franc was at a (premium/discount) of ______dollars, which ______equaled percent on an annual basis. What about the 90-day forwardfranc?

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DOLLAR/FRANC EXCHANGE VALUES CURRENCY PER U.S.$ IN U.S. $ Wed. Tues. Wed. Tues. Switzerland (franc) 585 5846 30-Day Forward 5853 5848 90-Day Forward 5854 5849 180-Day Forward 585 5847