Multiple Choice
The U.S. dollar is selling at a discount on the 30-day forward market when what is taking place?
A) The spot exchange rate is $1 = ¥120 currently and $1 = ¥130 after 30 days.
B) The spot exchange rate is $1 = ¥120 currently and $1 = ¥100 after 30 days.
C) The current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥110 after 30 days.
D) The current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥130 after 30 days.
E) The current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥120 after 30 days.
Correct Answer:
Verified
Correct Answer:
Verified
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