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Suppose the spot exchange rate is 0.9057 Euros for 1 U.S. dollar and the six-month forward rate is 0.9515 Euros for 1 U.S. dollar. The

Suppose the spot exchange rate is 0.9057 Euros for 1 U.S. dollar and the six-month forward rate is 0.9515 Euros for 1 U.S. dollar. The U.S. dollar is selling at a ________ relative to the Euro and the U.S. dollar is expected to ________ relative to the Euro over the next six months.

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discount; appreciate

discount; depreciate

premium; appreciate

premium; depreciate

premium; remain constant

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