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6. Suppose F>R. This means the domestic currency is selling at a forward currency is selling at a forward The domestic currency loses value (depreciates)

6. Suppose F>R. This means the domestic currency is selling at a forward currency is selling at a forward The domestic currency loses value (depreciates) going from spot to forward - the domestic currency is selling at a forward discount. That means the foreign currency is selling at a forward premium. and the foreign

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