Which of the Following Instances Indicates That the Dollar Is

question 110

Multiple Choice

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

• A)The spot exchange rate is currently $1 = ×120 and changes to $1 = ×130 after 30 days.
• B)The spot exchange rate is currently $1 = ×120 and changes to $1 = ×110 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.

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Definitions:

Ratification

The process of officially sanctioning a treaty or agreement to make it legally binding.

Adoption

The legal process by which an individual assumes the parenting of another, usually a child, from that person's biological or legal parent(s).

Unauthorized Contracts

Unauthorized contracts refer to agreements made by individuals who lack the legal authority or capacity to bind themselves or another party to contractual obligations.

Apparent Authority

A situation where a reasonable person would understand that an agent had authority to act, even if the agent did not have actual authority.