The euro is said to be selling at a ________ if the spot dollar price is $1.18 and the nine-month forward rate is $1.16.

Name: The euro is said to be selling at a ________ if the spot dollar price is $1.18 and the nine-month forward rate is $1.16.
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A forward discount occurs when the future exchange rate (forward rate) is lower than the current exchange rate (spot rate). In this case, since the forward rate ($1.16) is lower than the spot rate ($1.18), the euro is selling at a forward discount.

The Euro Is Said to Be Selling at a ________