If the spot rate of the Israeli shekel is 5.51 shekels per dollar and the 180-day forward rate is 5.68 shekels per dollar,then the forward rate for the Israeli shekel is selling at a(n)______________ to the spot rate.
A) 3.12% premium
B) 2.41% premium
C) 3.21% discount
D) 3.09% discount
E) 3.15% discount

Question

Quizplus · Accepted Answer

The forward rate is higher than the spot rate, indicating a discount. The percentage discount is calculated as ((5.68 - 5.51) / 5.68) * 100 = 3.09%.

If the Spot Rate of the Israeli Shekel Is 5