Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the spot exchange rate is 1.57 dollars per pound.

The spot exchange rate is 1.57 dollars per pound. The 30-day forward exchange rate is...

80.2K

Verified Solution

Question

Accounting

The spot exchange rate is 1.57 dollars per pound. The 30-day forward exchange rate is .6211 pounds per dollar. Therefore, pounds in the forward market are selling at a ________ to the current spot rate.

Select one:

a. .04 premium

b. .958 premium

c. .04 discount

d. .958 discount

explain please

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Explain in your own words, what can happen if D = 0 (Hessian Determinant). Given in particular...

Basic Math
Q

Coal is carried from a mine in West Virginia to a power plant in New York...

Statistics
Q

The dataset HairEyesColor in R contains classifications of students by gender, color, and eye color. a) How many...

Basic Math
Q

What are the physiologic implications of the congenital adrenal hyperplasia? (what is abnormal about the physiology...

Medical Sciences
Q

Describe the common characteristics and mechanical properties associated with aluminum.

Mechanical Engineering
Q

Angel Inc. recently hired you as a consultant to estimate the company’s WACC. You have obtained...

Finance
Q

A radioactive nucleus has specific binding energy E It emits an a particle The resulting...

Physics
Q

Find the length of side X in the figure shown below Area 91 18 cm...

Geometry
Q

Compute the Probability of Getting Exactly 5 Heads A coin is flipped 10 times and...

Geometry
Q

Find f g 2 for the following functions O wer to enter your answer opens...

Calculus
Q

When is a gain recorded on the sale of fixed assets?

Accounting
Q

Parker \& Stone. Inc.. is lonking at setting un a new manufacturing nlant in South...

Accounting