Question
The spot rate of the British pound to the dollar is 1.56 ($/). The 180 day forward rate is $1.70, the annualized forward premium is:
The spot rate of the British pound to the dollar is 1.56 ($/). 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) 17.949%
(b) 16.949%
(c) 20.449%
(d) 19.449%
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
4th edition
978-0133428469, 013342846X, 133428370, 978-0133428377
