Consider the following spot and forward rate quotations for the Swiss franc:
Which of the following is true:
A) The Swiss franc is definitely going to be worth more dollars in six months.
B) The Swiss franc is probably going to be worth less in dollars in six months.
C) The Swiss franc is trading at a forward discount.
D) The Swiss franc is trading at a forward premium.
Correct Answer:
Verified
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)
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