Question
The spot rate of the British pound to the dollar is 1.60 ($/). The 180 day forward rate is $1.70, the annualized forward premium is:
| The spot rate of the British pound to the dollar is 1.60 ($/). The 180 day forward rate is $1.70, the annualized forward premium is: (Use 360 days a year for calculations. Round your answer to 3 decimal places.) |
A. 15.000%
B. 11.500%
C. 14.000%
D. 12.500%
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
