In the foreign exchange market, there would be forward oncurrencies with higher interest rates and forward on currencies with lower interest rates.
A: discount, discount
B: premium, premium
C: discount, premium
D: premium, discount
A: discount, discount
B: premium, premium
C: discount, premium
D: premium, discount
举一反三
- According to the interest rate parity theory, when the forward foreign exchange rate is premium, it means that the domestic interest rate( ) A: is equal to the foreign exchange rate B: lower than foreign exchange rates C: higher than foreign exchange rates D: Not sure
- The calculation of the forward foreign exchange rate is ( ) A: Under the direct quotation, the spot exchange rate plus premium points and minus discount points B: Under the indirect quotation, the spot exchange rate plus premium points and minus discount points C: Under the indirect quotation, the spot exchange rate minus premium points and plus discount points D: The longer the period, the greater the bid-ask spread
- The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. The forward ____ is ____ percent. A: discount; 1.9 B: discount; 1.8 C: premium; 1.9 D: premium; 1.8
- The one-year forward rate of the British pound is quoted at $1.20, and the spot rate of the British pound is quoted at $1.23. The<br/>forward ____ is ____ percent. A: discount; 2.5 B: discount; 2.4 C: premium; 2.5 D: premium; 2.4
- If the forward exchange rate, defined as the domestic currency price<br/>of the foreign currency, is smaller than the spot exchange rate,<br/>there is a ( ). A: forward premium on the foreign currency. B: forward discount on the foreign currency. C: shortage of dollars. D: surplus of dollars.