The One-Year Forward Rate of the British Pound Is Quoted

question 52

Multiple Choice

The one-year forward rate of the British pound is quoted at $1.20, and the spot rate of the British pound is quoted at $1.23. The forward ____ is ____ percent.

• A) discount; 2.5
• B) discount; 2.4
• C) premium; 2.5
• D) premium; 2.4

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