Assume that the British pound is selling in the United States at $1.5985 spot and $1.5939 in the 180-day forward market, and that the Canadian dollar is selling in the United States at $.7336 spot and $.7422 in the 180-day forward market. Both quotes are direct. Which of the following is correct? Show your calculations. the Canadian dollar is selling at 2.3 percent premium in the forward market the Canadian dollar is selling at 1.17 percent premium in the forward market the Canadian dollar is selling at 1.17 percent discount in the forward market the British pound is selling at .57 percent premium in the forward market

Assume that the British pound is selling in the United States at $1.5985 spot and $1.5939 in the 180-day forward market, and that the Canadian dollar is selling in the United States at $.7336 spot and $.7422 in the 180-day forward market. Both quotes are direct. Which of the following is correct? Show your calculations. the Canadian dollar is selling at 2.3 percent premium in the forward market the Canadian dollar is selling at 1.17 percent premium in the forward market the Canadian dollar is selling at 1.17 percent discount in the forward market the British pound is selling at .57 percent premium in the forward market

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter8: Relationships Among Inflation, Interest Rates, And Exchange Rates

Section: Chapter Questions

Problem 4ST

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