Which of the Following Indicates That the Dollar Is Selling

question 6

Multiple Choice

Which of the following indicates that the dollar is selling at a discount on the 30-day forward market?

• A)The spot exchange rate is $1 = ×120 currently and $1 = ×130 after 30 days.
• B)The spot exchange rate is $1 = ×120 currently and $1 = ×100 after 30 days.
• C)The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×110 after 30 days.
• D)The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×130 after 30 days.
• E)The current spot exchange rate is $1 = ×120 and the 30-day forward rate is $1 = ×120 after 30 days.

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