(Section 20.1) The spot euro/£ is 1.5 and the one year forward euro/£ exchange rate is 1.6 per £. What is the forward premium for £ sterling? If covered interest parity holds, what is the...

(Section 20.1) The spot euro/£ is 1.5 and the one year forward euro/£ exchange rate is 1.6 per £. What is the forward premium for £ sterling? If covered interest parity holds, what is the euro-sterling interest rate differential?