What Was the Annualized Forward Premium on the Pound If

question 13

Multiple Choice

What was the annualized forward premium on the pound if the spot rate on May 6,2011 was £0.6102/$ and the 180 day forward rate was £0.5836/$?

• A)18.23%
• B)9.12%
• C)4.56%
• D)8.72%

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