Problem $5\mathrm{.}8$

Required:

Using Exhibit $5\mathrm{.}7,$ calculate the one$-,$ three$-,$ and six$-$month forward premium or discount for the U$.$S$.$ dollar versus the British pound

using European term quotations. For simplicity, assume each month has $30$ days. What is the interpretation of your results?

Note: Round your answers to $5$ decimal places.

Exhibit $5\mathrm{.}7$

Exchange Rates

$\backslash$table$[[$New Zealand dollar,$0\mathrm{.}6576,1\mathrm{.}5206],[$Philippines peso,$0\mathrm{.}01962,50\mathrm{.}975],[$Singapore dollar,$0\mathrm{.}7400,1\mathrm{.}3513],[$South Korea won,$0\mathrm{.}0008268,1209\mathrm{.}5],[$Taiwan dollar,$0\mathrm{.}03593,27\mathrm{.}835],[$Thailand baht,$0\mathrm{.}03009,33\mathrm{.}238],[$Vietnam dong,$0\mathrm{.}00004,22649\mathrm{.}7],[$Europe$],[$Czech Rep. koruna,$0\mathrm{.}04616,21\mathrm{.}666],[$Denmark krone,$0\mathrm{.}1499,6\mathrm{.}6708],[$Euro area euro,$1\mathrm{.}1235,0\mathrm{.}8901],[1-$mos forward,$1\mathrm{.}1241,0\mathrm{.}8896],[3-$mos forward,$1\mathrm{.}1260,0\mathrm{.}8881],[6-$mos forward,$1\mathrm{.}1299,0\mathrm{.}8851],[$Hungary forint,$0\mathrm{.}00316,316\mathrm{.}19],[$Norway krone,$0\mathrm{.}1124,8\mathrm{.}8963],[$Poland zloty,$0\mathrm{.}24515,4\mathrm{.}0791],[$Russia ruble,$0\mathrm{.}01293,77\mathrm{.}312],[$Sweden krona,$0\mathrm{.}1073,9\mathrm{.}3230],[$Switzerland franc,$1\mathrm{.}0785,0\mathrm{.}9272],[1-$mos forward,$1\mathrm{.}0793,0\mathrm{.}9265],[3-$mos forward,$1\mathrm{.}0815,0\mathrm{.}9247],[6-$mos forward,$1\mathrm{.}0857,0\mathrm{.}9211],[$Turkey lira,$0\mathrm{.}0752,13\mathrm{.}304],[$UK pound,$1\mathrm{.}3447,0\mathrm{.}7437],[1-$mos forward,$1\mathrm{.}3444,0\mathrm{.}7438],[3-$mos forward,$1\mathrm{.}3441,0\mathrm{.}7440],[6-$mos forward,$1\mathrm{.}3435,0\mathrm{.}7443],[\backslash$table$[[$Middle East$/$Africa$,,],[$Bahrain dinar,,$]]],[$Bahrain dinar,$2\mathrm{.}6527,0\mathrm{.}3770],[$Egypt pound,$0\mathrm{.}0636,15\mathrm{.}722],[$Israel shekel,$0\mathrm{.}3159,3\mathrm{.}1653],[$Jordan dinar,$1,4105,0,7090]]$

$\backslash$table$[[$Europe$,,],[$Czech Rep. koruna,$0\mathrm{.}04616,21\mathrm{.}666],[$Denmark krone,$0\mathrm{.}1499,6\mathrm{.}6708],[$Euro area euro,$1\mathrm{.}1235,0\mathrm{.}8901],[1-$mos forward,$1\mathrm{.}1241,0\mathrm{.}8896],[3-$mos forward,$1\mathrm{.}1260,0\mathrm{.}8881],[6-$mos forward,$1\mathrm{.}1299,0\mathrm{.}8851],[$Hungary forint,$0\mathrm{.}00316,316\mathrm{.}19],[$Norway krone,$0\mathrm{.}1124,8\mathrm{.}8963],[$Poland zloty,$0\mathrm{.}24515,4\mathrm{.}0791],[$Russia ruble,$0\mathrm{.}01293,77\mathrm{.}312],[$Sweden krona,$0\mathrm{.}1073,9\mathrm{.}3230],[$Switzerland franc,$1\mathrm{.}0785,0\mathrm{.}9272],[1-$mos forward,$1\mathrm{.}0793,0\mathrm{.}9265],[3-$mos forward,$1\mathrm{.}0815,0\mathrm{.}9247],[6-$mos forward,$1\mathrm{.}0857,0\mathrm{.}9211],[$Turkey lira,$0\mathrm{.}0752,13\mathrm{.}304],[$UK pound,$1\mathrm{.}3447,0\mathrm{.}7437],[1-$mos forward,$1\mathrm{.}3444,0\mathrm{.}7438],[3-$mos forward,$1\mathrm{.}3441,0\mathrm{.}7440],[6-$mos forward,$1\mathrm{.}3435,0\mathrm{.}7443],[$Middle East$/$Africa$,,],[$Bahrain dinar,$2\mathrm{.}6527,0\mathrm{.}3770],[$Egypt pound,$0\mathrm{.}0636,15\mathrm{.}722],[$Israel shekel,$0\mathrm{.}3159,3\mathrm{.}1653],[$Jordan dinar,$1\mathrm{.}4105,0\mathrm{.}7090],[$Kuwait dinar,$3\mathrm{.}3002,0\mathrm{.}3030],[$Nigeria naira,$0\mathrm{.}00241,415\mathrm{.}26],[$Saudi Arabia riyal,$0\mathrm{.}0650,3\mathrm{.}7519],[$South Africa rand,$0\mathrm{.}2723,15\mathrm{.}387],[$UAE dirham,$3\mathrm{.}6730,]]$