The spot Yen/US dollar exchange rate is 119.795 Yen/US$. The 3-month forward rate is
118) 397 Yen/US$. What is Yen's forward premium (or discount) on the dollar, expressed as annual percent rate?
A) 6.5% discount
B) 4.7% premium
C) 14% discount
D) none of the above
Correct Answer:
Verified
Q15: A currency forward contract is described by:
A)
Q16: The spot Peso/US$ exchange rate is US$10.9892/US$.
Q17: The Mexican economy is predicted to average
Q18: A quotation in the form Yens 119.33/US$
Q19: The spot BP/$ exchange rate is 0.5025/$,and
Q21: The phrase stronger currency implies a forward
Q22: Political risk is defined as:
A) Unanticipated changes
Q23: XJ Company from the USA is evaluating
Q24: Suppose that the G Company knows that
Q25: If a government was to seize the
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