If the Sport Rate for Euro Is $1

question 53

Multiple Choice

If the sport rate for Euro is $1.32/€ and the 90 day forward rate is $1.44/€ then the forward rate carries how much forward premium or discount?

• A)33.32% premium
• B)9)09% discount
• C)36.36% premium
• D)8)33% discount

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Definitions:

Cognitive Dissonance Theory

A theory suggesting that we have an inner drive to hold all our attitudes and beliefs in harmony and avoid disharmony (or dissonance).

Festinger

Refers to Leon Festinger, a social psychologist best known for his theory of cognitive dissonance, which describes the feelings of discomfort resulting from holding two conflicting beliefs.

Face-to-Face Interactions

Direct communication or exchange between people who are physically present in the same location.

Latin Americans

People from countries in Latin America, characterized by diverse cultural, ethnic, and historical backgrounds.