The 180-Day Forward Rate for the Euro Is $1

question 108

Multiple Choice

The 180-day forward rate for the euro is $1.34, while the current spot rate of the euro is $1.29. What is the annualized forward premium or discount of the euro?

• A) 7.46% premium
• B) 7.46% discount
• C) 7.75% premium
• D) 7.75% discount

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Definitions:

Main Effect

The direct influence of an independent variable on a dependent variable in an experiment.

Simple Effect

A statistical term that describes the effect of one factor at a specific level of another factor within an ANOVA test.

Marginal Mean

The average value of a variable across different levels of another variable, often used in the context of multivariate experiments and statistical analysis.

Men

Adult human males, often mentioned in socio-demographic and health-related research studies.