The one-year forward rate of the Japanese yen is quoted at $.013, and the spot rate of Japanese yen is quoted at $.011. The forward ____ is ____ percent.
A) discount; 18.18
B) premium; 18.18
C) discount; 15.38
D) premium; 15.38

Name: The one-year forward rate of the Japanese yen is quoted at $.013, and the spot rate of Japanese yen is quoted at $.011. The forward ____ is ____ percent. A) discount; 18.18 B) premium; 18.18 C) discount; 15.38 D) premium; 15.38
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Question

Quizplus · Accepted Answer

(F/S) - 1 = ($.013/$.011) - 1 = 18.18%

The One-Year Forward Rate of the Japanese Yen Is Quoted