Consider the interaction between U.S. dollars and U.K. pounds. When the forward premium on the dollar is zero, it means:
A) the current spot price of dollars equals the future spot price of dollars.
B) the future spot price of dollars will be equal to the current forward price of dollars.
C) the current forward price of dollars equals the current spot price of dollars.
D) the spot exchange rate value of the pound is moving toward $1 per pound.
Correct Answer:
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