If the Spot Price of the Swiss Franc Is $0

question 164

True/False

If the spot price of the Swiss franc is $0.4020 and the 90-day forward franc sells for $0.4026,the franc is at a 90-day forward discount of $0.0006,or at a 0.2 percent forward discount per annum against the dollar.

---

Definitions:

Tariffs

Taxes imposed by a government on imported or exported goods.

Quotas

Limitations or targets set on quantities such as production, sales, or imports and exports, used in business practices and international trade.

World Trade

The exchange of goods and services across international borders, influenced by agreements, tariffs, and global economic policies.

Largest Importer

The country or entity that brings the highest volume of goods into its territory from other countries.