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The 180-Day Forward Rate for the Euro Is $1

Question 18

Multiple Choice

The 180-day forward rate for the euro is $1.34, while the current spot rate of the euro is $1.29. What is the annualized forward premium or discount of the euro?


A) 7.46% premium
B) 7.46% discount
C) 7.75% premium
D) 7.75% discount

Correct Answer:

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