Exercise 3

1 page or so discussion

I’m working on a Economics exercise and need a sample draft to help me understand better.

Accessing Futures Quotes

Goto a web site that provides quotations for currency futures. Determinethe prevailing futures price of the main foreign currency for yourbusiness. Go to a web site that provides exchange rate quotations anddetermine the prevailing spot rate. What is the discount or premium ofthe futures price? (see equation below)

Futures price website:

https://www.tradingview.com/markets/futures/quotes-currencies/

https://www.barchart.com/futures/currencies

Currency (spot rate) website:

https://www1.oanda.com/currency/converter/

Makesure all quotes are made relative to the U.S. Dollar. Calculate thepremium (positive result) or discount (negative result):

(Futures price – Spot rate)/Spot rate

Monitoring Central Bank Intervention

1. How can your business be affected if the Fed attempts to strengthen the dollar in the foreign exchange market?
2. If the Fed decides to weaken the dollar, how will your business be affected?
3. How can indirect central bank intervention affect your business even if there is no impact on exchange rates?

I have attached the business I have