The €/$ Spot Exchange Rate Is $1

question 13

Multiple Choice

The €/$ spot exchange rate is $1.50/€ and the 90-day forward premium is 10 percent. Find the 90-day forward price.

• A)$1.65/€
• B)$1.5375/€
• C)$1.9125/€
• D)None of the above

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Definitions:

Plutonium

A radioactive chemical element used as fuel in nuclear power plants and in the manufacture of nuclear weapons.

Nitrogen

A chemical element with symbol N and atomic number 7, making up 78% of the Earth's atmosphere by volume; it is a vital component of amino acids, proteins, and nucleic acids.

Sodium

A chemical element with the symbol Na, known for its role in nerve transmission and fluid balance in the human body.

Water

is a transparent, tasteless, odorless, and nearly colorless chemical substance that is the main component of Earth's streams, lakes, and oceans, and the fluids of most living organisms.