(Answered) Question forward premiums on the dollareuro euro use the

Management Studies

Question: Forward Premiums on the Dollar/Euro ($/€). Use the following spot and forward bid-ask rates for the U.S. dollar/euro (US$/€) from December 10, 2010, to answer the following questions:

a. What is the mid-rate for each maturity?

b. What is the annual forward premium for all maturities?

c. Which maturities have the smallest and largest forward premiums?

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