Assume the Spot Rate of a Currency Is

question 10

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 percent
• B) premium; 11.11 percent
• C) premium; 10.81 percent
• D) discount; 10.81 percent

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Definitions:

Growth Rate

The rate at which a company's sales, revenue, or other important metrics increase over time.

Uninsured Senior Citizens

Elderly individuals who do not have health insurance coverage, making them potentially vulnerable to high medical costs.

Net Worth

The total value of all assets a person or entity owns minus the total value of all its liabilities.

Medicaid

A government-sponsored insurance program in the United States providing health coverage to individuals and families with low income and resources.