Question: Forward Premiums on the Australian Dollar. Use the following spot and forward bid-ask rates for the U.S. dollar/Australian dollar (US$/A$) exchange rate from December 10, 2010, to answer the following questions:
a. What is the mid-rate for each maturity?
b. What is the annual forward premium for all maturities?
c. Which maturities have the smallest and largest forward premiums?
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