Question: Use the information in the table below to answer the following questions: in U.S. $ per U.S. $ Japanese yen .009201 108.68 6-mos forward .009152

Use the information in the table below to answer the following questions:

in U.S. $ per U.S. $
Japanese yen .009201 108.68
6-mos forward .009152 109.26
British pound 1.5803 .6328
3-mos forward 1.5825 .6319

a.

The six-month forward rate for the Japanese yen is ___________ per U.S. dollar. The yen is selling at a discount because it is less expensive in the forward market than in the spot market. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b.

The three-month forward rate for the British pound is __________ per U.S. dollar. The British pound is selling at a premium because it is more expensive in the forward market than in the spot market. (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

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