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The spot rate is $1.40/pound, the 2-year forward exchange rate is $1.50/pound, and your personal forecast is that the spot rate will be $1.35/pound two
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The spot rate is $1.40/pound, the 2-year forward exchange rate is $1.50/pound, and your personal forecast is that the spot rate will be $1.35/pound two years from today.
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The euro is at a forward premium of 7.14%
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The dollar is at a forward discount of -3.33%
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The euro is at a forward discount of -1.79%
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The dollar is a forward premium of 3.70%
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