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As a Rule,when the Interest Rate of the Foreign Currency

Question 84

Multiple Choice

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 options

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