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

Understand the principles of social influence, including reciprocity, social facilitation, and social loafing.

Examine the dynamics and effects of group behavior on decision-making, including groupthink and group polarization.

Explore the concept of deindividuation in crowd behavior and its effect on individual actions.

Acknowledge the strategies used in bargaining and their underlying psychological principles.

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Definitions:

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values, indicating how much the values in the set differ from the mean.

Random Samples

A sample from a population that is chosen in such a way that every member of the population has an equal chance of being selected.

Standard Error

The standard deviation of the sampling distribution of a statistic, particularly mean, indicating the variability of an estimate from sample to sample.

Positively Skewed

A description of a distribution of data in which the tail on the right side of the histogram is longer than the left side, indicating that most values are clustered on the left.