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Consider the following spot and forward rate quotations for the Swiss franc. S ($/SFr) = 0.85 F 1 ($/SFr) = 0.86 F 2 ($/SFr) =

Consider the following spot and forward rate quotations for the Swiss franc.

S($/SFr) = 0.85

F1($/SFr) = 0.86

F2($/SFr) = 0.87

F3($/SFr) =0.88

Which of the following is true?

image text in transcribed

The Swiss franc is definitely going to be worth more dollars in six months. The Swiss franc is probably going to be worth less in dollars in six months. The Swiss franc is trading at a forward discount. The Swiss franc is trading at a forward premium

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