Assume the Spot Rate of the Swiss Franc Is

question 136

Multiple Choice

Assume the spot rate of the Swiss franc is $.62 and the one-year forward rate is $.66. The forward rate exhibits a ____ of ____.

• A) premium; about 6%
• B) discount; about 6%
• C) discount; about 6.45%
• D) premium; about 6.45%

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Definitions:

Electoral College

A body of electors established by the United States Constitution, which formally selects the President and Vice President based on the popular vote in each state.

Open Primary

A primary election in which voters are not required to declare party affiliation and can choose to participate in any party's primary.

Closed Primary

A type of primary election where only registered party members can vote for their party's candidates.

Recall Effort

A campaign to officially remove an elected official from office before their term is over, typically through a vote.