What Was the Annualized Forward Premium on the Pound If

question 54

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

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Definitions:

NIH

The National Institutes of Health, a part of the U.S. Department of Health and Human Services, is the primary federal agency conducting and supporting medical research.

Pillbox

A small container used to store pills, often designed with compartments for different days of the week or times of day.

Application

The act of applying or a formal request for something, typically a job, membership, or permission to use software.

Inhalants

Substances that produce chemical vapors, which, when inhaled, can cause mind-altering effects and are often misused.