- If the spot exchange rate for the Euro is Euro 1 = $0.67. The six-month forward exchange rate is Euro 1 = $0.65. Based on these quotes, which of the following statements is/are true?

I. The Euro is selling at a discount relative to the dollar.

II. The Euro is selling at a premium relative to the dollar.

III. The dollar is selling at a discount relative to the Euro.

IV. The dollar is selling at a premium relative to the Euro.

A) I and III only

B) I and IV only

C) II and III only

D) II and IV only

E) None of the above