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  3. suppose a bank quotes s = $1.1045/€. the ann

Suppose a bank quotes S = $1.1045/€. The annualized risk-free interest rates are 4% and 6%...

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Basic Math

Suppose a bank quotes S = $1.1045/€. The annualized risk-freeinterest rates are 4% and 6% in the U.S and Germany, respectively.Find the approximate forward rate for the euro. Do not write anysymbol. Make sure to round your answers to the nearest 100thdecimal points. For example, write 1.2345 for $1.2345/€.

Suppose a bank quotes $/€ = 1.1045-1.1506. What is the bid-askspread in percentage? Do not write any symbol. Express your answersas a percentage. Make sure to round your answers to the nearest100th decimal points. For example, write 12.34 for 12.34%.

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