Question
On a particular day, the spot exchange rate for the Thai baht was 35.80 (Bt/$). On the same day, the three-month forward exchange rate for
On a particular day, the spot exchange rate for the Thai baht was 35.80 (Bt/$). On the same day, the three-month forward exchange rate for the baht was 36.50 (Bt/$). Was the Thai baht trading at a premium or discount? What is the standard forward premium or discount for the Thai baht?
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Financial and Management Accounting
Authors: Pauline Weetman
7th edition
1292086599, 978-1292086590
