A$.$ Calculate the forward premium $($or discount$)\%$ on the dollar $($the dollar is the home currency$)$

if the spot rate is $1\mathrm{.}0200/$$ and the three$-$month forward rate is $1\mathrm{.}0300/$$$.$

Quoted $90-$day

Assumptions Spot rate Forward rate

Days forward $90$

European euro $(/$$$)1\mathrm{.}02001\mathrm{.}0300$

B$.$ Calculate the forward discount $($or premium$)\%$ on the pound $($the dollar is the home currency$)$

if the spot rate is $$1\mathrm{.}5500/$ and the six$-$month forward rate is $$1\mathrm{.}5600/$

Quoted $180-$day

Assumptions Spot rate Forward rate

Days forward $180$

Exchange rate, US$$/$ $ $1\mathrm{.}5500$ $ $1\mathrm{.}5600$B$.$ Calculate the forward discount $($or premium$)\%$ on the pound $($the dollar is the home currency$)$

if the spot rate is $$\frac{1\mathrm{.}5500}{}$ and the six$-$month forward rate is $$\frac{1\mathrm{.}5600}{}$