Suppose That: What Is the Annualized %Age Discount or Premium

question 68

Multiple Choice

Suppose that: What is the annualized %age discount or premium of the Canadian Dollar on the U.S.Dollar?

• A)1.10% premium
• B)1.10% discount
• C)2.20% premium
• D)2.20% discount The Canadian Dollar is at a forward discount.It takes more Canadian Dollars to buy one U.S Dollar in the forward market than in the spot market.

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