If the euro is selling at a premium relative to the USD in the forward

If the euro is selling at a premium relative to the USD in the forward market, is the forward price of USD /EUR larger or smaller than the spot price of the USD /EUR?

A) larger
B) smaller
C) indeterminate
D) the same

 

 

ANSWER

Answer: A

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00