If the Spot Price of the Swiss Franc Is $0

question 110

True/False

If the spot price of the Swiss franc is $0.4020 and the 90-day forward franc sells for $0.4026, then the franc is at a 90-day forward discount of $0.0006 or at a 0.2 percent forward discount per annum against the dollar.

---

Definitions:

Asthenosphere

A highly viscous, mechanically weak region of the upper mantle beneath the Earth's lithosphere.

Erupting Volcano

A geological event where molten rock, ash, and gases escape from a crack in the Earth's surface.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in the air and is absorbed by plants in photosynthesis.

Crystalline Structure

A unique arrangement of atoms in a crystal, characterized by its highly regular order and symmetry.