The Spot Rate of the British Pound to the Dollar

question 77

Multiple Choice

The spot rate of the British pound to the dollar is 1.68 ($/≤,) .The 180 day forward rate is $1.71,the annualized forward premium is:

• A) 1.018%.
• B) 3.636%.
• C) 7.273%.
• D) 2.036%.

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Definitions:

Adverse Possession

Adverse possession is a legal principle under which a person who occupies someone else's land for an extended period, meeting certain requirements, may acquire legal ownership of that land without compensation.

Owner's Permission

Authorization granted by the owner for someone else to use or manage their property or assets.

Quitclaim Deed

A legal document transferring a grantor's interest in a property without making any guarantee of clear title.

Special Warranty Deed

A deed which promises only that the seller has not done anything to lessen the value of the estate.