A Forward Exchange Contract Is Being Transacted at a Premium

question 46

Multiple Choice

A forward exchange contract is being transacted at a premium if the current forward rate is

• A)​less than the expected spot rate.
• B)​greater than the expected spot rate.
• C)​less than the current spot rate.
• D)​greater than the current spot rate.

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Definitions:

Intergroup Attitudes

Feelings, beliefs, and behaviors directed toward people based on their membership in a specific group.

Nonverbal Behavior

Communication without words, which includes gestures, facial expressions, and body language.

National In-group

The phenomenon of identifying more closely and positively with one's own nation or ethnic group, while maintaining a less favorable attitude towards other groups.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, policies, or societal rules.