You Checked the €/$ Exchange Rate Today and You Found

question 10

Multiple Choice

You checked the €/$ exchange rate today and you found that one Dollar cost you €0.8214.When you checked the one year €/$ forward exchange rate one dollar was trading at €0.8026.What is the forward premium (discount) for the Euro?

• A) 2.35%
• B) -2.35%
• C) 3.67%
• D) -3.67%

---

Definitions:

Financial Advantage

The benefit or gain, often in terms of money or economic value, that a person or entity receives, often through investments, business operations, or other means of increasing wealth.

Positive Adaptation

The process of adjusting to new conditions in a way that maintains or enhances well-being or effectiveness.

Resilience

The mental capability to adapt and bounce back quickly from adversity, trauma, tragedy, or significant sources of stress.

Stressors

External or internal factors that cause stress, challenging an individual's ability to cope and potentially affecting their health and well-being.