Use the information in Figure 32.1A and 32.1C to answer the following questions:
a. What is the six-month forward rate for the Japanese yen, in yen per Canadian dollar? Is the yen selling at a premium or a discount? Explain.
b. What is the three-month forward rate for British pounds in Canadian dollars per pound? Is the dollar selling at a premium or a discount? Explain.
c. What do you think will happen to the value of the dollar relative to the yen and the pound, based on the information in the figure? Explain.
In Figure 32.1A and 32.1C

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Previous 4 weeks Week % change ange change 4week % Latest 1.0747 1.0732 0.7351 0.7353 0.7334 101.915 101.903 101.975 -0.3% 0.589 0.894 1.0683 1.0612 0.5874 0.8945 0.5948 0.8966-0.1% 1.0794 Swiss Frand -0.3% -10.1% -0.3% Mexico Peso 13.0675 13.0337 12.8588 7.7528 7.7516 7.7512 1.249512494 1.2563 6.2325 6.2255 Singapore $ China Renminbi India Rupee Russia Rouble 3 6.2475 -0.2% 58.98 -0.3% 33.837 34.098 2.2243 2.2212 2.239 Previous 4 weeks Week % 4week % change change change Per CDN$ 0.93049 0.93179 0.92115-0.1% 0.68515 0.67557-0.2% 94.83112 94.95248 93.93423-0.1% 0.54806 0.54734 0.5479 0.83186 0.83349 0.8259 0.99404 0.98882 0.99429 -0.2% Swiss Frand Mexico Peso Singapore 12.15921 12.14471 11.84488 28 7.22251 7.14149 7.21 1.16265 1.16344 1.15724-0.1% 5.79929 5.80088 5.75488 China Renminbi 55.9505 56.08461 54.3294 Russia Rouble 31.48507 31.77227 31.70136-0.9% 2.06969 2.0697 2.06245 Per US$ 1 month 3 months 6 months 1yar 2 years 3 years 4 years 5 years 10794 10842 10906 10915 0 10869 1.0753 1.0769 0.7349 0.7348 0.7344 0.7335 0.7277 0.7161 0.702 0.6887 Yen 101.9495 101.911 101.8449 101.64 100.5045 98.3086 95.4422 92.3128 0.5889 0.5892 0.5898 0.5918 0.5967 0.5994 0.5998 0.5989 3 Per CDN$ 1 month 3 months 6 months 1a 2 years 3 years 4 years5 years 0.9300 0.9286 0.9264 0.9223 0.9169 09162 0.9182 09200 0.6834 0.6822 0.6804 0.6765 0.6674 0.6561 0.6446 0.6334 Yen 94.812 94.626 94.3593.74 92.156 90.066 87.6272 84.933 0.5476 0.5471 0.5464 0.5458 0.5472 0.5493 0.5507 0.5511