Question
1) On June 1, 2020, the Euro had a spot rate of .9098 per USD. The 3-month forward rate of the Euro was .9123 on
1) On June 1, 2020, the Euro had a spot rate of .9098 per USD. The 3-month forward rate of the Euro was .9123 on that date. What is the Euro's forward premium or discount?
| A. | 1.52% forward discount | |
| B. | 1.52% forward premium | |
| C. | 1.1% forward discount | |
| D. | 1.1% forward premium |
2)
On June 1, 2020, the Euro had a spot rate of .9098 per USD. The 6-month forward rate of the Euro was .9007 on that date. What is the forward premium or discount?
| A. | 2% forward discount | |
| B. | 2% forward premium | |
| C. | 4% forward discount | |
| D. | 4% forward premium |
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Corporate Finance Principles And Practice
Authors: Denzil Watson, Antony Head
5th Edition
0273725343, 978-0273725343
