Here is the answer for the question – The spot and 30 day forward rates for the Dutch guilder are. You’ll find the correct answer below
The spot and 30 day forward rates for the Dutch guilder are $.3075 and $.3120, respectively. The guilder is said to be selling at a forward
a. premium of 16.83%
b. premium of 17.56%
c. discount of 6.39%
d. discount of 15.10%
The Correct Answer is
b. premium of 17.56%
Reason Explained
b. premium of 17.56% is correct for The spot and 30 day forward rates for the Dutch guilder are
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