The euro is said to be selling at a ________ if the spot dollar price is $1.18 and the nine-month forward rate is $1.16

A) forward discount
B) forward premium
C) forward spread
D) none of the above

A

Economics

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The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve

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