Multiple Choice
If the spot indirect exchange rate of Mexican Pesos for U.S.Dollars is 9.8/1 and the peso is trading at a forward premium of 3%, then a U.S.trader will receive:
A) More than 9.8 Pesos per Dollar in the future
B) Less than 9.8 Pesos per Dollar in the future
C) 9.83 Pesos per Dollar in the future
D) 10.09 Pesos per Dollar in the future
Correct Answer:
Verified
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