The current five-year Euro yen and Eurodollar rates are 8% and 12.5% per annum,respectively.What is the implied forward premium or discount of the yen over the current spot rate for a five-year forward contract?
A) 4.17% premium
B) 18.46% discount
C) 17.74% discount
D) 22.64% premium
Correct Answer:
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