If the Spot Rate of the British Pound Is $2

question 44

Multiple Choice

If the spot rate of the British pound is $2, and the 180-day forward rate is $2.05, what is the annualized premium or discount?

• A)2.5 percent discount
• B)2.5 percent premium
• C)10 percent premium
• D)5 percent discount
• E)5 percent premium

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Definitions:

Type C Personality

Pleasant but repressed person, who tends to internalize his or her anger and anxiety and who finds expressing emotions difficult.

Coronary Heart Disease

A condition characterized by the narrowing of the coronary arteries, leading to a decreased blood supply to the heart muscle, potentially resulting in a heart attack.

Primary Appraisal

Primary appraisal is the initial evaluation process where an individual assesses the significance of a stressor and determines whether it is a threat, challenge, or harm.

Stress-Related Decision

Decision-making processes that are significantly influenced or impaired by psychological stress.