Suppose the Spot Rate and Forward Rate for the British

question 11

Multiple Choice

Suppose the spot rate and forward rate for the British pound are $and $respectively. Assume the forward pound is selling at a annualized discount, what is the number of days of the forward contract?

• A) 180 days
• B) 120 days
• C) 90 days
• D) 60 days

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Definitions:

Nitrogen

A chemical element with symbol N and atomic number 7, which is a critical component of all living cells, notably in proteins and nucleic acids.

Denitrification

A microbial process that converts nitrate in the soil to nitrogen gas, releasing it into the atmosphere and reducing soil fertility.

Nitrification

A microbiological process by which ammonia is oxidized to nitrate ions, an essential step in the nitrogen cycle.

Nitrogen Fixation

The process by which atmospheric nitrogen is converted into a form usable by plants, often facilitated by bacteria.