The annualized forward (blank) for the Canadian dollar/U.S. dollar exchange rate when market quotes are CAD1.38 per USD spot and CAD1.42 per USD quoted on a six month forward contract is (blank) a. discount; 2.90%. b. premium; 5.80%. c. premium; 2.90%. d. discount; 5.80%.
The annualized forward (blank) for the Canadian dollar/U.S. dollar exchange rate when market quotes are CAD1.38 per USD spot and CAD1.42 per USD quoted on a six month forward contract is (blank) a. discount; 2.90%. b. premium; 5.80%. c. premium; 2.90%. d. discount; 5.80%.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The annualized forward (blank) for the Canadian dollar/U.S. dollar exchange rate when market quotes are CAD1.38 per USD spot and CAD1.42 per USD quoted on a six month forward contract is (blank)
| a. |
discount; 2.90%. |
|
| b. |
premium; 5.80%. |
|
| c. |
premium; 2.90%. |
|
| d. |
discount; 5.80%. |
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