If the Spot Rate of the Israeli Shekel Is 5

question 22

Multiple Choice

If the spot rate of the Israeli shekel is 5.51 shekels per dollar and the 180-day forward rate is 5.97 shekels per dollar, then the forward rate for the Israeli shekel is selling at a ____ to the spot rate.

• A) premium of 8%
• B) premium of 18%
• C) discount of 18%
• D) discount of 8%
• E) premium of 16%

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Definitions:

Fontanelles

Soft spots on a baby's skull where the bones have not yet fused together, allowing for easier birth and brain growth.

Neonate's Skull

Describes the characteristics and conditions of a newborn baby's skull, which is notably soft and flexible due to fontanelles.

Bones

The rigid organs that form part of the endoskeleton of vertebrates, providing support, protection, and aiding in movement.

Fused

Combined or blended to form a single entity.