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  3. Study Set
    International Financial Management
  4. Exam
    Exam 3: Forward Markets and Transaction Exchange Risk
  5. Question
    If the Forward Price of a Currency Contract Is Lower
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If the Forward Price of a Currency Contract Is Lower

Question 3

Question 3

Multiple Choice

If the forward price of a currency contract is lower than the spot rate,the currency is said to be at a


A) forward discount.
B) forward premium.
C) future expected exchange rate.
D) forward swap rate.

Correct Answer:

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