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question 47
question 47
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Country USD equiv. Currency per USD

Tuesday Monday Tuesday Monday

U.K. (Pound) 1.7368 1.7424 0.5758 0.5739

1 Month Forward 1.7369 1.7425 0.5757 0.5739

3 Months Forward 1.738 1.7434 0.5754 0.5736

6 Months Forward 1.7409 1.7461 0.5744 0.5727

Canada (Dollar) 0.8667 0.8653 1.1538 1.1557

1 Month Forward 0.8674 0.866 1.1529 1.1547

3 Months Forward 0.8688 0.8674 1.151 1.1529

6 Months Forward 0.8708 0.8693 1.1484 1.1504

Japan (Yen) 0.008518 0.008495 117.3985 117.7163

1 Month Forward 0.008548 0.008525 116.0631 117.3021

3 Months Forward 0.008616 0.008593 116.0631 116.3738

6 Months Forward 0.008724 0.0087 114.6263 114.9425

Switzerland (Franc) 0.7648 0.7652 1.3075 1.3068

1 Month Forward 0.767 0.7674 1.3038 1.3031

3 Months Forward 0.7718 0.7722 1.2957 1.295

6 Months Forward 0.7791 0.7794 1.2835 1.283

Euro 1.2000 1.1906 0.8333 0.8399

Using the table,what is 3-month forward premium or discount (expressed as an annual percentage rate)for the British pound in terms of U.S.dollars?

Country	USD equiv.		Currency per USD
	Tuesday	Monday	Tuesday	Monday
U.K. (Pound)	1.7368	1.7424	0.5758	0.5739
1 Month Forward	1.7369	1.7425	0.5757	0.5739
3 Months Forward	1.738	1.7434	0.5754	0.5736
6 Months Forward	1.7409	1.7461	0.5744	0.5727
Canada (Dollar)	0.8667	0.8653	1.1538	1.1557
1 Month Forward	0.8674	0.866	1.1529	1.1547
3 Months Forward	0.8688	0.8674	1.151	1.1529
6 Months Forward	0.8708	0.8693	1.1484	1.1504
Japan (Yen)	0.008518	0.008495	117.3985	117.7163
1 Month Forward	0.008548	0.008525	116.0631	117.3021
3 Months Forward	0.008616	0.008593	116.0631	116.3738
6 Months Forward	0.008724	0.0087	114.6263	114.9425
Switzerland (Franc)	0.7648	0.7652	1.3075	1.3068
1 Month Forward	0.767	0.7674	1.3038	1.3031
3 Months Forward	0.7718	0.7722	1.2957	1.295
6 Months Forward	0.7791	0.7794	1.2835	1.283
Euro	1.2000	1.1906	0.8333	0.8399

Definitions:

Normal Good

A type of good for which demand increases as the income of the consumer increases and decreases as the income of the consumer decreases, all else being constant.

Income

Money received, especially on a regular basis, for work or through investments, constituting the financial gain derived from labor, capital, or other sources.

Hamburgers

In an economic context, refers to a commonly cited example of a product in studies of competition, pricing, and consumer choice.

Supply Curve

An illustrated chart that displays the link between the cost of a commodity and the volume of the commodity that producers are ready to sell.