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20.The British pound currently trades at spot exchange rate of $1.584 and a six-month forward rate of $1.581. What is the annualized forward premium or

20.The British pound currently trades at spot exchange rate of $1.584 and a six-month forward rate of $1.581. What is the annualized forward premium or discount on the British pound?

___ 0.4% premium ___ 0.2% discount ___ 0.4% discount

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