If the spot rate is USD/CAN1.67 and the 1-month forward rate is USD/CAN1.70:
A) the Canadian dollar is trading at a forward premium
B) the Canadian dollar is trading at a forward discount
C) the US dollar is trading at a forward discount
D) the US dollar is trading at a forward premium
E) the USD is at a forward premium and the CAN is at a forward discount.
Correct Answer:
Verified
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