Suppose that: What is the annualized %age discount or premium of the Canadian Dollar on the U.S.Dollar?
A)1.10% premium
B)1.10% discount
C)2.20% premium
D)2.20% discount The Canadian Dollar is at a forward discount.It takes more Canadian Dollars to buy one U.S Dollar in the forward market than in the spot market.

Question

Suppose that:  What is the annualized %age discount or premium of the Canadian Dollar on the U.S.Dollar?
A)1.10% premium 
B)1.10% discount 
C)2.20% premium 
D)2.20% discount The Canadian Dollar is at a forward discount.It takes more Canadian Dollars to buy one U.S Dollar in the forward market than in the spot market.

Quizplus · Accepted Answer

The Answer of Suppose that:  What is the annualized %age discount or premium of the Canadian Dollar on the U.S.Dollar?
A)1.10% premium 
B)1.10% discount 
C)2.20% premium 
D)2.20% discount The Canadian Dollar is at a forward discount.It takes more Canadian Dollars to buy one U.S Dollar in the forward market than in the spot market.

Suppose That: What Is the Annualized %Age Discount or Premium