Question
Assume the spot rate between the US dollar and Swiss franc is Sfr1.6372 = $1 and the 180-day forward rate is Sfr1.5232 =$1. The forward
Assume the spot rate between the US dollar and Swiss franc is Sfr1.6372 = $1 and the 180-day forward rate is Sfr1.5232 =$1. The forward rate of Swiss franc exhibits a _______ of _______. Notice that the forward rate is for 180 days.
premium; about 14.97%
discount; about 6.96%
discount; about 13.93%
premium; about 7.48%
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Money Talks Explaining How Money Really Works
Authors: Nina Bandelj ,Frederick F. Wherry ,Viviana A. Zelizer
1st Edition
0691202893, 978-0691202891
