Assume the Spot Rate of a Currency Is

question 59

Multiple Choice

Assume the spot rate of a currency is $.37 and the 90-day forward rate is $.36. The forward rate of this currency exhibits a ____ of ____ on an annualized basis.

• A) discount; 11.11%
• B) premium; 11.11%
• C) premium; 10.81%
• D) discount; 10.81%

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Definitions:

Major Organic Product

The predominant output resulting from a chemical reaction involving organic reactants, distinguished by its higher yield compared to other products.

Activating Group

A substituent attached to a benzene ring that increases its reactivity by stabilizing the intermediate cation through resonance or electron-donating effects.

Benzene

A cyclic hydrocarbon with the formula C6H6, characterized by its aromaticity, consisting of a ring of six carbon atoms with alternating double and single bonds.

Mononitration

The chemical process of introducing one nitro group (-NO2) to an organic molecule, commonly employed in the synthesis of nitro compounds.