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Question 27 Assume the euro is selling in the spot market for $1.18. Simultaneously, in the three-month forward market the euro is selling for $1.20.
Question 27 Assume the euro is selling in the spot market for $1.18. Simultaneously, in the three-month forward market the euro is selling for $1.20. Which one of the following statements correctly describes this situation? The spot market is out of equilibrium. The forward market is out of equilibrium. The dollar is selling at a premium relative to the euro. The euro is selling at a premium relative to the dollar
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