The spot rate for the Singapore dollar is £0.32. The 30-day forward rate is £0.319. The forward rate contains an annualized ____ of ____%.

Name: The spot rate for the Singapore dollar is £0.32. The 30-day forward rate is £0.319. The forward rate contains an annualized ____ of ____%.
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Question

Quizplus · Accepted Answer

The forward rate is lower than the spot rate, indicating a discount. The annualized discount is calculated as ((0.319 - 0.32) / 0.32) * (360/30) * 100 = -3.75%.

The Spot Rate for the Singapore Dollar Is £0