Solved

Which of the Following Indicates That the Dollar Is Selling

Question 56

Multiple Choice

Which of the following indicates that the dollar is selling at a discount on the 30-day forward market?


A) The spot exchange rate is $1 = ×120 currently and $1 = ×130 after 30 days.
B) The spot exchange rate is $1 = ×120 currently and $1 = ×100 after 30 days.
C) The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×110 after 30 days.
D) The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×130 after 30 days.
E) The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×120 after 30 days.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents