The 3 month forward rate between British pound and the Swiss franc is £0.5/SF.The current spot rate is £0.51/SF.
A) The Swiss franc is trading at a 1.96% premium to the British pound for delivery in 90 days.
B) The Swiss franc is trading at a 7.84% premium to the British pound for delivery in 90 days.
C) The Swiss franc is trading at a 1.96% discount to the British pound for delivery in 90 days.
D) The Swiss franc is trading at a 7.84% discount to the British pound for delivery in 90 days.
Correct Answer:
Verified
Q2: The US dollar is quoted directly against
Q3: The world's largest foreign exchange trading center
Q4: Most foreign exchange transactions are for:
A) intervention
B)
Q6: On average,worldwide daily trading of foreign exchange
Q7: The foreign exchange market closes
A)Never.
B)4:00 p.m. EST
Q12: The foreign exchange market is:
A) an organized
Q25: The 3 month forward rate between British
Q26: If the speculator's predictions prove correct,the speculator
Q30: If the speculator's predictions prove wrong and
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