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The SF/$ spot exchange rate is SF1.25/$ and the 180 day forward exchange rate is SF1.30/$. The annualized forward premium (discount) is A. the dollar
The SF/$ spot exchange rate is SF1.25/$ and the 180 day forward exchange rate is SF1.30/$. The annualized forward premium (discount) is
- A. the dollar is trading at a 4% discount to the Swiss franc for delivery in 180 days.
- B. the dollar is trading at a 4% premium to the Swiss franc for delivery in 180 days.
- C. the dollar is trading at an 8% premium to the Swiss franc for delivery in 180 days.
- D. the dollar is trading at an 8% discount to the Swiss franc for delivery in 180 days.
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
