Assume the spot rate of a currency is $.37 and the 90-day forward rate is $.36. The forward rate of this currency exhibits a ____ of ____ on an annualized basis.
A) discount; 11.11%
B) premium; 11.11%
C) premium; 10.81%
D) discount; 10.81%

Question

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The Answer of Assume the spot rate of a currency is $.37 and the 90-day forward rate is $.36. The forward rate of this currency exhibits a ____ of ____ on an annualized basis.
A) discount; 11.11%
B) premium; 11.11%
C) premium; 10.81%
D) discount; 10.81%

Assume the Spot Rate of a Currency Is