You are given the following hypothetical quotes. Spot exchange rates:
€ :$ 1.1865-1.1870
$:¥ 108.10-108.20
Three-month interest rates (percent per year):
In $ 5-5*4
In€ 3V4SV2
In¥ \V-\%
What should the quotes be for the following?
a. €:¥ spot exchange rate.
b. €:$ three-month forward ask exchange rate. Hint. Buying euros forward is equiva¬lent to borrowing dollars to buy euros spot and investing the euros.
c. $:€ three-month forward bid exchange rate.
d. $:¥ three-month forward bid and ask exchange rate.