Question

A) If the British Pound (GBP) is selling today for $1.272/1GBP (spot rate today) and the...

A) If the British Pound (GBP) is selling today for $1.272/1GBP (spot rate today) and the 180 day forward rate on the British Pound is $1.251, what is the annualized forward premium?

B)  If the Euro (EUR) is selling today for $1.126/1 euro (spot rate today) and the 90 day forward rate on the Euro is $1.131/1 euro, what is the annualized forward premium or discount on the Euro?

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