Table 11.4.Forward Exchange Rates

question 61

Multiple Choice

Table 11.4.Forward Exchange Rates

-Refer to Table 11.4.On Wednesday,the 90-day forward franc was selling at a:

• A) 0.8 percent premium per annum against the dollar
• B) 1.6 percent premium per annum against the dollar
• C) 0.8 percent discount per annum against the dollar
• D) 1.6 percent discount per annum against the dollar

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Confidence Interval

A range of values, derived from sample data, within which there's a specified probability that the true parameter value lies.

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of values.

Standard Error

The standard deviation of the sampling distribution of a statistic, measuring its accuracy as an estimate of the population parameter.