Bank of American (BOA) quotes the following rates for the US dollar

Bid (SF/$) Ask (SF/$)

Spot rate 0.9886 0.9889

1-month forward 0.9905 0.9908

3-month forward 0.9951 0.9953

6-month forward 1.0014 1.0016

12-month forward 1.0151 1.0157

Based on the bid quote, is the dollar selling at a 3-month forward premium or a forward discount? Calculate annualized forward premium or discount for 3-month forward quote.

A) 0.0201% forward premium

B) 2.63% forward premium

C) 1.858% forward premium

D) 0.657% forward premium