Question: 4. Spot and forward exchange rates Use the data from a table entitled Currencies dated Sept 23, 2016 given to you at the beginning of

4. Spot and forward exchange rates Use the data from a

4. Spot and forward exchange rates Use the data from a table entitled Currencies dated Sept 23, 2016 given to you at the beginning of the year to answer the following questions. Find the forward exchange rate (1 month) between the $ and the British Pound and the forward exchange rate (1 month) between the dollar and the euro in the table as well as the spot exchange rates (closing mid point). a. Report below: Spot $l = 1 month forward $l= Are the markets expecting the Pound to depreciate or to appreciate with respect to the dollar? (underline the correct answer) b. Report below: Spot $l = 1 month days forward $l= Are the markets expecting the Euro to depreciate or to appreciate with respect to the dollar? (underline the correct answer)

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