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If the spot exchange rate is yen120/1 and the one year forward exchange rate is yen 130/1. Then the euro is at a forward: Select

image text in transcribed If the spot exchange rate is yen120/1 and the one year forward exchange rate is yen 130/1. Then the euro is at a forward: Select one: a. premium and the one-year European interest rate is lower than the one-year Japanese interest rate. b. discount and the one-year European interest rate is higher than the one-year Japanese interest rate. c. premium and the one-year European interest rate is higher than the one-year Japanese interest rate. d. discount and the one-year European interest rate is lower than the one-year Japanese interest rate. If the spot exchange rate is yen120/1 and the one year forward exchange rate is yen 130/1. Then the euro is at a forward: Select one: a. premium and the one-year European interest rate is lower than the one-year Japanese interest rate. b. discount and the one-year European interest rate is higher than the one-year Japanese interest rate. c. premium and the one-year European interest rate is higher than the one-year Japanese interest rate. d. discount and the one-year European interest rate is lower than the one-year Japanese interest rate

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