Which of the Following Is Correct If the Spot Exchange

question 69

Multiple Choice

Which of the following is correct if the spot exchange rate on the pound sterling is $2.56 (Canadian) /£ and the one-year forward exchange rate is $2.48 (Canadian) /£? The pound is trading:

• A)at a 3.13% forward discount relative to the Dollar.
• B)at a 3.13% forward premium relative to the Dollar.
• C)at a 3.22% forward discount relative to the Dollar.
• D)at a 3.22% forward premium relative to the Dollar.

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Definitions:

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, affecting how organisms inherit traits from their parents.

Gene Sequence

The order of nucleotides in a segment of DNA or RNA, determining genetic information and characteristics in living organisms.

Heritable Changes

Genetic alterations that can be passed from parents to offspring, affecting the characteristics of future generations.

Chromosomes

Structures within cells that contain DNA and carry genetic information vital for cell function, development, and reproduction.