Kizspy Question: 15
(Choose 1 answer)
The SF/$ spot exchange rate is SF1.25/S and the 180 day forward exchange rate is SF1.30/$. The forward
premium (discount) is
A. the dollar trading at an 8% premium to the Swiss franc for delivery in 180 days.
B. the dollar trading at a 4% premium to the Swiss franc for delivery in 180 days.
C. the dollar trading at an 8% discount to the Swiss franc for delivery in 180 days.
D. the dollar trading at a 4% discount to the Swiss franc for delivery in 180 days
