Solved

If the British Pound Is Selling at $1

Question 28

Multiple Choice

If the British pound is selling at $1.5212 spot on September 3, and at a 90-day forward rate of $1.5203, then ________.


A) the pound is selling at a forward premium
B) the pound is selling at a forward discount
C) an investor should buy a call option
D) speculators should buy put options

Correct Answer:

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