Suppose That What Is the Annualized Percentage Discount or Premium of the

question 39

Multiple Choice

Suppose that: $$\begin{array}{l}\begin{array} {lll } \text {U.K. (pound) }&\frac { \text { Spot Rate } } { 1.5331 }&\frac { 3 \text { Month Forward Rate } } { 1.5372 }&\frac { 1 \text { Year Forward Rate } } { 1.5502 }\end{array}\end{array}$$ What is the annualized percentage discount or premium of the U.K.pound on the U.S.Dollar?

• A)1.10% premium
• B)1.10% discount
• C)2.20% premium
• D)2.20% discount

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Definitions:

Urine

Fluid secreted from the blood by the kidneys, stored in the bladder, and discharged from the body by voiding.

Creatinine

A waste product generated from muscle metabolism, whose blood levels are used to assess kidney function.

Triglycerides

A combination of glycerol and fatty acids in the blood.

Lipid

A group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins, monoglycerides, diglycerides, triglycerides, phospholipids, and others.