If the Spot Rate of the British Pound Is $2

question 44

Multiple Choice

If the spot rate of the British pound is $2, and the 180-day forward rate is $2.05, what is the annualized premium or discount?

• A)2.5 percent discount
• B)2.5 percent premium
• C)10 percent premium
• D)5 percent discount
• E)5 percent premium

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Definitions:

New Social Movements

Became prominent in the 1970s. They attract a disproportionately large number of highly educated people in the social, educational, and cultural fields, and universalize the struggle for citizenship.

Highly Localized Nature

A characteristic or phenomenon that is confined or particular to a very specific location or area.

Narrow Focus

Concentration on a limited or highly specialized area of interest or activity, often at the expense of broader considerations.

Subsidized Housing

A form of housing assistance where the government or a non-profit organization provides financial support to help lower-income individuals or families afford their homes.