If the Direct Quote, Forward Exchange Rate Is Higher Than

question 95

Multiple Choice

If the direct quote, forward exchange rate is higher than the spot rate, the forward currency is trading at a:

• A)spot rate.
• B)discount.
• C)premium.
• D)forward spot rate.

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Definitions:

Issuing Corporation's Common Stock

The process by which a corporation releases its own shares of stock to the public for the first time or through subsequent offerings.

Long-term Notes

Debt obligations with a maturity of more than one year, used by companies to finance operations or major purchases.

Multiple Lenders

A situation where a borrower has loans or credit lines from more than one lender at the same time.

Bond Financing

Raising capital through the issuance of bonds, which are debt securities that obligate the issuer to pay interest to holders and repay the principal at maturity.