If E_f = the Forward Rate on Three-Months Swiss Francs $\frac { \mathrm { e } _ { f } - \mathrm { e } } { \mathrm { e } }$

question 4

Multiple Choice

If e_f = the forward rate on three-months Swiss francs, e = the current spot rate on Swiss francs, and E(e) = the expected future rate of the Swiss franc in three months, then the Swiss franc is said to be at a forward discount if __________ is negative.

• A)
• \(\frac { \mathrm { e } _ { f } - \mathrm { e } } { \mathrm { e } }\)
• B)
• \(\frac { \mathrm { e } - \mathrm { e } _ { \underline { f } } } { \mathrm { e } }\)
• C)
• \(\frac { E ( e ) - e } { e }\)
• D)
• \(\frac { E ( e ) - e _ { f } } { e _ { f } }\)

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