Question
A)If the Euro (EUR) is selling today for $1.126/1 euro (spot rate today) and the 90 day forward rate on the Euro is $1.131/1 euro,
A)If the Euro (EUR) is selling today for $1.126/1 euro (spot rate today) and the 90 day forward rate on the Euro is $1.131/1 euro, what is the annualized forward premium or discount on the Euro?
B)If the British Pound (GBP) is selling today for $1.272/1GBP (spot rate today) and the 180 day forward rate on the British Pound is $1.251, what is the annualized forward premium or discount on the British Pound?
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
