The following are the prices in the foreign exchange market between the Canadian dollar and another local currency (LC). $$\begin{array} { l l }
\text { Spot } & \$ 0.02465 / \mathrm { LC } \
\text { 3-month forward } & \$ 0.02473 / \mathrm { LC } \
\text { 6-month forward } & \$ 0.02474 /\mathrm { LC }
\end{array}$$ What was the discount or premium on 3-month forward for LC?

Question

The following are the prices in the foreign exchange market between the Canadian dollar and another local currency (LC). $$\begin{array} { l l } 
\text { Spot } & \$ 0.02465 / \mathrm { LC } \
\text { 3-month forward } & \$ 0.02473 / \mathrm { LC } \
\text { 6-month forward } & \$ 0.02474 /\mathrm { LC }
\end{array}$$ What was the discount or premium on 3-month forward for LC?

Quizplus · Accepted Answer

The Answer of The following are the prices in the foreign exchange market between the Canadian dollar and another local currency (LC). $$\begin{array} { l l } 
\text { Spot } & \$ 0.02465 / \mathrm { LC } \
\text { 3-month forward } & \$ 0.02473 / \mathrm { LC } \
\text { 6-month forward } & \$ 0.02474 /\mathrm { LC }
\end{array}$$ What was the discount or premium on 3-month forward for LC?

The Following Are the Prices in the Foreign Exchange Market