Assume the Spot Rate of a Currency Is

Multiple Choice

Assume the spot rate of a currency is $.37 and the 90-day forward rate is $.36. The forward rate of this currency exhibits a ____ of ____ on an annualized basis.

A) discount; 11.11 percent
B) premium; 11.11 percent
C) premium; 10.81 percent
D) discount; 10.81 percent