Which of the Following Is Correct If the Spot Exchange

question 69

Multiple Choice

Which of the following is correct if the spot exchange rate on the pound sterling is $2.56 (Canadian) /£ and the one-year forward exchange rate is $2.48 (Canadian) /£? The pound is trading:

• A)at a 3.13% forward discount relative to the Dollar.
• B)at a 3.13% forward premium relative to the Dollar.
• C)at a 3.22% forward discount relative to the Dollar.
• D)at a 3.22% forward premium relative to the Dollar.

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Definitions:

Intestate

A legal term describing the status of an individual who dies without a valid will, leading to their estate being distributed according to statutory laws.

Heirs

Individuals legally entitled to receive a portion of a deceased person's estate according to the law or the will of the deceased.

Spouse

A partner in marriage or a civil union, often sharing social, legal, and financial responsibilities.

Probate

The legal process by which a deceased person's will is validated and their property is distributed to heirs.