A spot trade in FX is a trade made today and settled two days in the future. A forward trade is an agreement made today to exchange currencies at a future date. Using the current spot rate of USD/CAD =1.3317 and an assumed 6-month forward rate of USD/CAD =1.3025,

which of the following statements are true? Select one: a. CAD is appreciating against USD b. CAD is selling at a premium in the forward market c. USD is selling at a forward discount of 4.39% d. All of the above are true e. Only a. and b. above are true