A foreign currency exchange forward contract priced at a discount means the
A) forward rate is larger than the spot rate
B) spot rate is larger than the forward rate
C) forward rate minus the risk premium is negative
D) spot rate minus the risk premium is negative
Correct Answer:
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Q13: An investor's exchange rate "frame of reference"
Q14: The nominal rate of interest is a
Q15: The current price of a foreign currency
Q16: The contractual rate between a bank and
Q17: A U. S. storekeeper who entered into
Q18: Forward rates reflect differences in
A) national interest
Q19: Inflation in the home country causes the
Q20: The text described an example of purchasing
Q21: The extent to which you face foreign
Q23: The type of foreign exchange risk exposure
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