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You operate in a market where there is no arbitrage opportunity. The 30 day Eurocurrency rate for $US is 6%. The 30 day Eurocurrency rate

You operate in a market where there is no arbitrage opportunity. The 30 day Eurocurrency rate for $US is 6%. The 30 day Eurocurrency rate for is 8%. The spot exchange rate is 1.45 $US/. is selling at a forward _____ and the annualized value is ___.

	discount, close to - 0.02
	discount, close to -0.24
	premium, close to 0.06
	premium, close to 0.08
	None of these

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