Question 47

Question 47

Essay

Country	USD equiv.		Currency per USD
	Tuesday	Monday	Tuesday	Monday
U.K. (Pound)	1.7368	1.7424	0.5758	0.5739
1 Month Forward	1.7369	1.7425	0.5757	0.5739
3 Months Forward	1.738	1.7434	0.5754	0.5736
6 Months Forward	1.7409	1.7461	0.5744	0.5727
Canada (Dollar)	0.8667	0.8653	1.1538	1.1557
1 Month Forward	0.8674	0.866	1.1529	1.1547
3 Months Forward	0.8688	0.8674	1.151	1.1529
6 Months Forward	0.8708	0.8693	1.1484	1.1504
Japan (Yen)	0.008518	0.008495	117.3985	117.7163
1 Month Forward	0.008548	0.008525	116.0631	117.3021
3 Months Forward	0.008616	0.008593	116.0631	116.3738
6 Months Forward	0.008724	0.0087	114.6263	114.9425
Switzerland (Franc)	0.7648	0.7652	1.3075	1.3068
1 Month Forward	0.767	0.7674	1.3038	1.3031
3 Months Forward	0.7718	0.7722	1.2957	1.295
6 Months Forward	0.7791	0.7794	1.2835	1.283
Euro	1.2000	1.1906	0.8333	0.8399

Using the table,what is 3-month forward premium or discount (expressed as an annual percentage rate)for the British pound in terms of U.S.dollars?

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0.28% = ×...

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