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Please help fill in the blanks in part 2. Options are discount or premium for both blanks Forward Premium on the Dollar. Calculate the forward
Please help fill in the blanks in part 2. Options are discount or premium for both blanks
Forward Premium on the Dollar. Calculate the forward premium on the dollar if the spot rate is $1.5798 = 1.00 and the 3-month forward rate is $1.5544 = 1.00. Note: Use a 360-day year. The forward premium on the dollar is 6.5362 %. (Round to four decimal places.) (Select from the drop-down menus.) to the pound. That is, the forward rate The positive premium indicates that the pound is selling forward at a V to the dollar, and simultaneously, the dollar is selling forward at a requires fewer U.S. dollars in exchange for pounds than the current spot rate
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