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 these are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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