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Suppose the spot exchange rate is C$1.064 and the six-month forward rate is C$1.071. The U.S. dollar is selling at a _____ relative to the
| Suppose the spot exchange rate is C$1.064 and the six-month forward rate is C$1.071. The U.S. dollar is selling at a _____ relative to the Canadian dollar and the U.S. dollar is expected to _____ relative to the Canadian dollar. |
| Discount; depreciate |
| Premium; remain constant |
| Premium; depreciate |
| Discount; appreciate |
| Premium; appreciate |
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