Spot Rate: Given That the Spot Rate Is ¥106

question 58

Multiple Choice

Spot rate: Given that the spot rate is ¥106.74/$ and the 180-day forward quote is ¥100.37/$, we can say that

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

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