As a rule, when the interest rate of the foreign currency is greater than the interest rate of the quoting currency,
A) the outright forward rate is less than the spot exchange rate.
B) the outright forward rate is more than the spot exchange rate.
C) the currency will trade at a premium in the forward contract.
D) none of the above
Correct Answer:
Verified
Q82: An exchange-traded fund (ETF) is
A)the same thing
Q83: Q84: Consider the balance sheets of Bank A Q85: Consider the balance sheets of Bank A Q86: The SF/$ spot exchange rate is SF1.25/$ Q88: The €/$ spot exchange rate is $1.50/€ Q89: The SF/$ 180-day forward exchange rate is Q90: Swap transactions
A)involve the simultaneous sale (or purchase)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents