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
Correct Answer:
Verified
Q79: Restate the following one-,three-,and six-month outright
Q80: The current spot exchange rate is $1.55/€
Q81: The SF/$ spot exchange rate is SF1.25/$
Q82: The largest and most active financial market
Q83: Consider the following spot and forward rate
Q85: