A Forward Rate for a Currency Is Said to Exhibit

question 97

Multiple Choice

A forward rate for a currency is said to exhibit a discount if:​

• A)the forward rate exceeds the existing spot rate.
• B)the forward rate is less than the existing spot rate.
• C)the forward rate exceeds the expected future spot rate.
• D)the forward rate is less than the expected future spot rate.
• E)none of the above

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Definitions:

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