Suppose the spot rate and forward rate for the British pound are $1.42
Suppose the spot rate and forward rate for the British pound are $1.4248 and $1.4179 respectively. Assume the forward pound is selling at a 1.94% annualized discount, what is the number of days of the forward contract?
A) 180 days
B) 120 days
C) 90 days
D) 60 days
ANSWER
Answer: C
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