Use the information below to answer the following question.

		Exchange Rate								Interest Rate		APR
S0($/)		$	1.60		=		1.00			i$			2	%
F360($/)		$	1.58		=		1.00			i			4	%

If you had 1,000,000 and traded it for USD at the spot rate, how many USD will you get?

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Assume that you are a retail customer (i.e., you buy at the ask and sell at the bid). Use the information below to answer the following question.

		Bid								Ask										APR
S0($/)		$	1.42		=		1.00			$	1.45		=		1.00			i$			4	%
F360($/)		$	1.48		=		1.00			$	1.50		=		1.00			i			3	%

If you had borrowed $1,000,000 and traded for euro at the spot rate, how many do you receive?