Multiple Choice
For a U.S.trader working in American quotes,if the forward price is higher than the spot price
A) the currency is trading at a premium in the forward market.
B) the currency is trading at a discount in the forward market.
C) then you should buy at the spot,hold on to it and sell at the forward-it's a built-in arbitrage.
D) All of the options-it really depends if you're talking American or European quotes.
Correct Answer:
Verified
Correct Answer:
Verified
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