The spot rate for U.S.dollars and Euros is $1.232/€.The 90 day forward rate for the two currencies is $1.254/€.The U.S.dollar
A) trades at a 1.79% 90 day forward premium.
B) trades at a 7.14% annual forward premium.
C) trades at a 1.79% 90 day forward discount.
D) trades at a 7.14% annual forward discount.
Correct Answer:
Verified
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