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When executing trades on a spot or forward basis, premiums and discounts are involved. Which of the following is correct: a)The forward rate can exceed

When executing trades on a spot or forward basis, premiums and discounts are involved. Which of the following is correct:

a)The forward rate can exceed the spot rate on a given date, in which case the foreign currency is said to be selling at a premium or discount in the forward market

b) the forward rate can be less than the spot rate, in which case it is selling at a premium or discount.

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