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Suppose Citigroup quotes spot rate of Yuan6.64/$ and 270-day forward rates of Yuan6.71/$. What is the annualized forward discount or premium on dollar? Is dollar

Suppose Citigroup quotes spot rate of Yuan6.64/$ and 270-day forward rates of Yuan6.71/$. What is the annualized forward discount or premium on dollar? Is dollar selling at a forward premium or discount (assume a year has 360 days)?

a. -3.7%, forward discount

b. 1.41%, forward premium

c. 1.38%, forward premium

d. None of the above

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