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2. Assume the exchange rate between the euro and the Swiss franc is currently trading at S[EUR/CHF] = .9206. You observe the three month forward

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2. Assume the exchange rate between the euro and the Swiss franc is currently trading at S[EUR/CHF] = .9206. You observe the three month forward rate is .9258. From this information alone, relative to the Swiss franc you can conclude the euro is: A. At a forward discount, and the euro/Swiss 3-month interest differential is 2.25% p.a. B. At a forward discount, and the euro/Swiss 3-month interest differential is .56% p.a. C. At a froward premium, and the euro/Swiss 3-month interest differential is .56% p.a. D. At a froward premium, and the euro/Swiss 3-month interest differential is 2.25% p.a

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