When the current $/£ forward rate is below the current spot rate, the pound is at a(n) _____.
A) forward premium
B) forward discount
C) covered parity
D) uncovered parity
Correct Answer:
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Q21: _ is buying a country's currency spot
Q22: Suppose the interest rate on one-year U.S.
Q23: For an investor who starts with dollars
Q24: Suppose the interest rate on one-year U.S.
Q25: Consider the interaction between U.S. dollars and
Q27: The proportionate difference between the current forward
Q28: The covered interest differential is _ the
Q29: If the covered interest differential is zero,
Q30: Using actual market exchange rates and comparable
Q31: Suppose the interest rate on 6-month treasury
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