Suppose That the 1-Year Forward Rate of Dollar Per Pound

question 43

Multiple Choice

Suppose that the 1-year forward rate of dollar per pound is $1.32,the current spot rate $/pound is $1.20,and the expected future spot rate $/pound is $1.40.The expected premium on the pound is:

• A) -6.7%
• B) 5.7%
• C) 10%
• D) 16.7%

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Definitions:

SSIs Rate

Stands for Surgical Site Infections rate, which is a measure used in healthcare to quantify the occurrence of infections that occur after surgical procedures in the part of the body where the surgery took place.

National Average

The mean value calculated from the available data that represents a norm or benchmark across a country.

Divorce Rate

The divorce rate is a statistical measure that represents the number of divorces per unit of population within a specified time period or demographic.

Confidence Interval

A range of values derived from sample statistics that is likely to contain the true value of an unknown population parameter.