Which of the following indicates that the dollar is selling at a discount on the 30-day forward market?
A) When the spot exchange rate is $1 = ¥120 currently and $1 = ¥130 after 30 days
B) When the spot exchange rate is $1 = ¥120 currently and $1 = ¥100 after 30 days
C) When the current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥110 after 30 days
D) When the current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥130 after 30 days
E) When the current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥120 after 30 days
Correct Answer:
Verified
Q26: Steven converted $1,000 to ×105,000 for a
Q28: An American company imports laptop computers from
Q32: Which of the following refers to carry
Q35: The interest rate on borrowings in Rhodia
Q38: Which of the following refers to currency
Q49: When a firm insures itself against foreign
Q50: Which of the following caused a decline
Q52: Carry trade,a kind of speculation,takes advantage of
Q55: When two parties agree to exchange currency
Q57: _ refers to the simultaneous purchase and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents