The following are the prices in the foreign exchange market between the U.S. dollar and a foreign currency (fc). Spot 0.6335US$/fc; three-month forward 0.6375US$/fc. What was the discount or premium on three-month forward for the foreign currency?

A) 0.63% premium
B) 0.40% premium
C) 0.63% discount
D) 0.40% discount

Answer: A

Business

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