The current spot exchange rate between the Euro and the Dollar is $1=$ $$1\mathrm{.}07.$ The $12-$month forward exchange rate is $1=$ $$1\mathrm{.}05.$ Is the Euro trading at a premium or a discount against the Dollar on the forward market?

a$.$ Premium

b$.$ Discount

The current spot exchange rate between the Euro and the Dollar is $1=$ $$1\mathrm{.}07.$ The $12-$month forward exchange rate is $1=$ $$1\mathrm{.}05.$ What is the percentage amount of this premium or discount?

a$.$ It is a premium of around $2\%$ for Euro.

b$.$ It is a discount of around $4\%$ for Euro.

c$.$ It is a premium of around $5\%$ for Euro.

d$.$ It is a discount of around $2\%$ for Euro.