If the Forward Price of a Currency Contract Is Lower

question 3

Multiple Choice

If the forward price of a currency contract is lower than the spot rate,the currency is said to be at a

• A) forward discount.
• B) forward premium.
• C) future expected exchange rate.
• D) forward swap rate.

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Definitions:

Protective Environment

A setting or condition designed to prevent harm or damage, typically used in the context of safeguarding human health or ecosystems.

Mitochondria

Organelles in eukaryotic cells that produce energy through cellular respiration.

Sperm

Male reproductive cells designed for fertilization, carrying genetic information to the egg.

Spermatids

Immature male gametes formed from secondary spermatocytes after meiosis II in the process of spermatogenesis.