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Use what you need of the following set of information to answer the question: S0...

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Finance

Use what you need of the following set of information to answer the question:

S0 = $1.1420/ S0 = 0.7776/$ S0 = $1.2860/

E (S1 (3-months)) = $1.1280/ F3-months = $1.1590/

Where: = euro; = British pound; E ( ) = Expected.

  1. If you want to know the spot value of the euro in terms of the British pound from the information given above, how would you find out? Show calculations.
  2. If you want to know the spot value of the British pound in terms of the euro from the information given above, how would you find out? Show calculations

(Show all your calculations and explain your work. All currency amount answers should be presented with two decimal places, all currency rates with the same number of decimals they are given, and all rates of change and premiums/discounts with four decimal places)

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