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The spot rate of the dollar is SF1.2948/$. The six-month forward contract for the Swiss...

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Finance

The spot rate of the dollar is SF1.2948/$. The six-month forward contract for the Swiss franc is quoted by a dealer at 8.80% discount. The six-month outright forward rate is...

SF1.2378/$

SF1.2402/$

SF1.3518/$

SF1.3544/$

SF1.4197/$

The Swiss franc spot rate is $0.7260/SF and the Swiss franc 3-month forward rate is $0.7020/SF. At what discount or premium would the Swiss franc be quoted?

13.22%, premium

13.22%, discount

13.68%, discount

13.68%, premium

3.31%, discount

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