The Spot Rate Is $1

question 41

Multiple Choice

The spot rate is $1.00/€ and the one-year forward rate is $1.10/€. What is the percentage forward premium (or discount) on the euro?

• A) less than 0%
• B) 0%
• C) 10 percent
• D) more than 10%
• E) None of the above

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Definitions:

Fern

A type of non-flowering plant that reproduces via spores and has fronds, commonly found in moist, shaded areas.

Nonvascular Plants

Plants that lack vascular tissue, including xylem and phloem, making them incapable of transporting water and nutrients efficiently.

Archegonium

A female reproductive structure in ferns, mosses, and some conifers, where the egg cell is produced and fertilization occurs.

Eggs

The female reproductive cells of animals, often enclosed in a protective outer shell, from which the offspring develops.