Forward premium: The spot rate on the London market was £0.5434/$, while the 90-day forward rate was £0.5519/$. What is the annualized forward premium or discount on the U.S. dollar for the period? Round to one decimal place.
A) 1.6% premium
B) 6.2% premium
C) 6.3% discount
D) 1.6% discount
Correct Answer:
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