The €/$ spot exchange rate is $1.50/€ and the 120 day forward exchange rate is 1.45/€. The forward premium (discount) is
A) the dollar is trading at an 8% premium to the euro for delivery in 120 days.
B) the dollar is trading at a 5% premium to the Swiss franc for delivery in 120 days.
C) the dollar is trading at a 10% discount to the euro for delivery in 120 days.
D) the dollar is trading at a 5% discount to the euro for delivery in 120 days.
Correct Answer:
Verified
Q67: When a currency trades at a discount
Q69: The current spot exchange rate is $1.50/€
Q74: Restate the following one-, three-, and six-month
Q75: Which of the following are correct?
A)
Q77: The forward market
A)involves contracting today for the
Q80: For a U.S. trader working in American
Q81: Bank dealers in conversations among themselves use
Q82: An exchange-traded fund (ETF) is
A)the same thing
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