Assuming the 30-Day Forward Exchange Rate Were $1 = ¥130

question 87

Multiple Choice

Assuming the 30-day forward exchange rate were $1 = ¥130 and the spot exchange rate were $1 = ¥120, the dollar is selling at a _____ on the 30-day forward market.

• A) premium
• B) margin
• C) discount
• D) subsidy

---

Definitions:

Analysis

The process of examining the components or structure of something to understand it better or draw conclusions.

Intentionally Distort

To deliberately misrepresent or twist information, facts, or figures with the purpose of misleading or deceiving.

Graduate Degree

An advanced academic degree pursued after completing an undergraduate degree, such as a Master's or Doctorate.

Sensationalizing

The act of presenting information in a way that provokes public interest and excitement, often at the expense of accuracy or truth.