As a foreign exchange trader at Sumitomo Bank, you have a customer who would like spot and 30-day for- ward yen quotes on Australian dollars. Current market rates are as follows:
Spot
¥121.37–85/U.S.$1
A$1.1878–98/U.S.$1
30-day
15–13
0–26
a. What bid and ask yen cross rates would you quote on spot Australian dollars?
b. What outright yen cross rates would you quote on 30-day forward Australian dollars?
c. What is the forward premium or discount on buying 30-day Australian dollars against yen delivery?