The spot and 180?day forward rates for the DM are $.3310 and $.3402, respectively. The DM is said to be selling at a forward

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The forward rate is higher than the spot rate, indicating that the DM is selling at a forward premium. The percentage premium is calculated as ((.3402 - .3310) / .3310) * 100 = 2.78%, which rounds to 2.8%. However, the correct choice is D, which is 5.6%, because the calculation should consider the annualized rate for 180 days: ((.3402 - .3310) / .3310) * (360/180) * 100 = 5.6%.

The Spot and 180?day Forward Rates for the DM Are