It is 1998. 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%
Answer: B
Business
You might also like to view...
The primary difference between entering into a gamble and purchasing insurance is that
A) in a gamble the odds are known with certainty. B) with all types of insurance you are always financially better off, whereas, with gambles, you are always financially worse off. C) a gamble involves pure risk, whereas insurance involves speculative risk. D) gambling is in many circumstances illegal and insurance is legal.
Business
How do you know how much debt you can comfortably afford?
What will be an ideal response?
Business