Question
The SF/$ spot exchange rate is 1.25 and the 180 forward exchange rate is 1.35. What is the forward premium (discount) of the dollar against
The SF/$ spot exchange rate is 1.25 and the 180 forward exchange rate is 1.35.
What is the forward premium (discount) of the dollar against SF for delivery in 180 days?
A. 11.25% premium
B. 14.81% premium
C. 11.25% discount
D. 14.81% discount
E. 17.67% discount
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
