Question: Using Exhibit 5.7, calculate the one-, three-, and six-month forward premium or discount for the Japanese yen versus the U.S. dollar using American term quotations.

Using Exhibit 5.7, calculate the one-, three-, and six-month forward premium or discount for the Japanese yen versus the U.S. dollar using American 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. Exchange Rates \begin{tabular}{|l|r|r|} \hline 6-mos forward & 0.00872 & 114.70 \\ \hline Malaysia ringgit & 0.2389 & 4.1855 \\ \hline Philippines peso & 0.6576 & 1.5206 \\ \hline Singapore dollar & 0.01962 & 50.975 \\ \hline South Korea won & 0.7400 & 1.3513 \\ \hline Taiwan dollar & 0.0008268 & 1209.5 \\ \hline Thailand baht & 0.03593 & 27.835 \\ \hline Vietnam dong & 0.03009 & 33.238 \\ \hline Europe & 0.00004 & 22649.7 \\ \hline Czech Rep. koruna & & \\ \hline Denmark krone & 0.04616 & 21.666 \\ \hline Euro area euro & 0.1499 & 6.6708 \\ \hline 1-mos forward & 1.1235 & 0.8901 \\ \hline 3-mos forward & 1.1241 & 0.8896 \\ \hline 6-mos forward & 1.1260 & 0.8881 \\ \hline Hungary forint & 1.1299 & 0.8851 \\ \hline Norway krone & 0.00316 & 316.19 \\ \hline Poland zloty & 0.1124 & 8.8963 \\ \hline Russia ruble & 0.24515 & 4.0791 \\ \hline Sweden krona & 0.01293 & 77.312 \\ \hline Switzerland franc & 0.1073 & 9.3230 \\ \hline 1-mos forward & 1.0785 & 0.9272 \\ \hline 3-mos forward & 1.0793 & 0.9265 \\ \hline 6-mos forward & 1.0815 & 0.9247 \\ \hline Turkey lira & 1.0857 & 0.9211 \\ \hline UK pound & 0.0752 & 13.304 \\ \hline 1-mos forward & 1.3447 & 0.7437 \\ \hline 3-mos forward & 1.3444 & 0.7438 \\ \hline 6-mos forward & 1.3441 & 0.7440 \\ \hline \end{tabular} \begin{tabular}{|l|r|l|} \hline UK pound & 1.3447 & 0.7437 \\ \hline 1-mos forward & 1.3444 & 0.7438 \\ \hline 3-mos forward & 1.3441 & 0.7440 \\ \hline 6-mos forward & 1.3435 & 0.7443 \\ \hline Middle East/Africa & & \\ \hline Bahrain dinar & 2.6527 & 0.3770 \\ \hline Egypt pound & 0.0636 & 15.722 \\ \hline Israel shekel & 0.3159 & 3.1653 \\ \hline Jordan dinar & 1.4105 & 0.7090 \\ \hline Kuwait dinar & 3.3002 & 0.3030 \\ \hline Nigeria naira & 0.00241 & 415.26 \\ \hline Saudi Arabia riyal & 0.2665 & 3.7519 \\ \hline South Africa rand & 0.0650 & 15.387 \\ \hline UAE dirham & 0.2723 & 3.6730 \\ \hline \end{tabular}

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