Suppose the Spot Rate and Forward Rate for the British

question 5

Multiple Choice

Suppose the spot rate and forward rate for the British pound are $1.4248 and $1.4179 respectively.Assume the forward pound is selling at a 1.94% annualized discount,what is the number of days of the forward contract?

• A)180 days
• B)120 days
• C)90 days
• D)60 days

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