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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.
Group of answer choices
discount; appreciate
discount; depreciate
premium; appreciate
premium; depreciate
premium; remain constant
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