Forward Rates

Group report 2.1 - Forward Rates

This report is aim to find the latest spot and forward quotes (1-month, 3-month, and 1-year) for Japanese Yen and Australian dollar against the US dollar by using The Wall Street Journal and Financial Times web-sites, as well as to calculate the Japanese Yen and Australian dollar forward premium/discount against the US dollar.

In this report, US dollar is the home currency.

For Indirect quotation

| JPY/USD | AUD/USD |

Spot Exchange Rate(5-8-2014) | 102.455 | 1.0720 |

Forward exchange ratein one-month | 102.434 | 1.0744 |

Forward exchange ratein three-month | 102.391 | 1.0789 |

Forward exchange ratein one-year | 102.044 | 1.0495 |

*(The data that we use was retrieved on 05-08-2014, so we used the spot exchange rate on the date of 04-08-2014)

Use following formula (Indirect):

F=Spot-ForwardForward×360n×100%

Japanese Yen

F1 month=102.455-102.434102.434×36030×100%=0.2460%

Forward Premium

F3 month=102.455-102.391102.391×36090×100%=0.2500%

Forward Premium

F1 year=102.455-102.044102.044×360360×100%=0.4028%

Forward Premium

Australian dollar

F1 month=1.0720-1.07441.0744×36030×100%=-2.6806%

Forward Discount

F3 month=1.0720-1.07891.0789×36090×100%=-2.5582%

Forward Discount

F1 year=1.0720-1.04951.0495×360360×100%=2.1439%

Forward Premium

For Direct quotation

| USD/JPY | USD/AUD |

Spot Exchange Rate(5-8-2014) | 0.00975 | |

Forward exchange ratein one-month | 0.00971 | |

Forward exchange ratein three-month | 0.00971 | |

Forward exchange ratein six-month | 0.00972 | |

Forward exchange ratein one-year | 0.01050 | |

Use following formula (Direct):

F=Foward-SpotSpot×360n×100%

Japanese Yen

F1 month=0.00971-0.009710.00971×36030×100%=0

F3 month=0.00971-0.009710.00971×36090×100%=0%

F6 month=0.00972-0.009710.00971×360180×100%=2.06%

Forward Premium

F1 year=0.01050-0.009710.00971×360360×100% =8.14%

Forward Premium

Australian dollar

F1...