Given That the Spot Rate Is $1

question 67

Multiple Choice

Given that the spot rate is $1.5136/€ and the 90-day forward quote is $1.4974/€, we can say that

• A) the U.S. dollar is at a forward premium against the Euro.
• B) the U.S. dollar is at a forward discount against the Euro.
• C) the Euro is at a forward premium against the U.S. dollar.
• D) the dollar is at neither a premium nor a discount against the Euro.