Here is the answer for the question – The spot and 180 day forward rates for the DM are. You’ll find the correct answer below
The spot and 180 day forward rates for the DM are $.3310 and $.3402, respectively. The DM is said to be selling at a forward
a. discount of 2.8%
b. premium of 2.8%
c. discount of 5.6%
d. premium of 5.6%
The Correct Answer is
d. premium of 5.6%
Reason Explained
d. premium of 5.6% is correct for The spot and 180 day forward rates for the DM are
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