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Using the following prices of the pound and the euro in terms of US dollars, which answer is closest to the annualized 6-month forward premium
Using the following prices of the pound and the euro in terms of US dollars, which answer is closest to the annualized 6-month forward premium on the Euro relative to the dollar?
British Pounds | Euros | |
GBP/USD | EUR/USD | |
Spot | 1.2903 | 1.1452 |
3-month forward | 1.3056 | 1.1485 |
6-month forward | 1.3080 | 1.1535 |
9-month forward | 1.3103 | 1.1565 |
12-month forward | 1.3225 | 1.1595 |
0.72%
2.74%
1.37%
2.50%
1.45%
5.00%
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