Which currencies are at a dollar discount and which are at a dollar premium? What are the outright forward rates for the pound? For the french franc? Using mid points of bid ask spreads, what are the forward premia or discounts on an annualized percentage basis for both these currencies? 11 of 14 The Foreign Exchange Market Background Note and Problem Set Exhibit I Spot and Forward Exchange Rates 3 Months G Months 12 Months 160/156 1.4890/00 Deutsche mark 2031020 French Franc6.6575/625 154 20130 2141/43 128/105 22/18 73/86 B/6 5/3 2771228 1194/1351 64/137 Yen 33/27 75/62 SOR 12/8 Exhibit 2 Cross-Spot Exchange Rates DM 305051 1316971 3 277988 43365/84 75 9232/350 23.1596618 Quotes should be inderpreted as units of the currency represented in the left-hand oolumn per unit of cumency shown in the op ow Quotes for the Diyen and FFlyen are expressed in units per 100 yen 25.