Forward Premium on the Euro. Calculate the forward premium on the Euro if the spot rate is $$1\mathrm{.}0709=1\mathrm{.}00$ and the $3-$month forward rate is $$1\mathrm{.}06=1\mathrm{.}00.$ Note: Use a $360-$day year.

The forward premium on the Euro is

$\%.($Round to four decimal places.$)$

$($Select from the drop$-$down menus.$)$

The euro would be selling forward at a against the dollar, or equivalently, the dollar selling forward against the euro at a

discount

premium