Multiple Choice
Which of the following indicates that the dollar is selling at a discount on the 30-day forward market?
A) When the spot exchange rate is $1 = ¥120 currently and $1 = ¥130 after 30 days
B) When the spot exchange rate is $1 = ¥120 currently and $1 = ¥100 after 30 days
C) When the current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥110 after 30 days
D) When the current spot exchange rate is $1 = ¥120 and the 30-day forward rate is $1 = ¥130 after 30 days
E) When 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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