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Which of the Following Is Correct? the Spot and 30

Question 1

Multiple Choice

Which of the following is correct? The spot and 30 day forward rates for the euro are $1.4757 and $1.48, respectively. The euro is said to be selling at a forward


A) premium of 1.2%
B) premium of 3.5%
C) discount of 3.5%
D) discount of 1.2%

Correct Answer:

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