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The Spot and 30-Day Forward Rates for the Dutch Euro

Question 12

Multiple Choice

The spot and 30-day forward rates for the Dutch euro are $1.4757 and $1.48,respectively.The guilder is said to be selling at a forward

A) premium of 1.2%
B) premium of 3.5%
C) discount of 3.5%
D) discount of 1.2%

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