Register
If the base currency in a forward exchange rate quote is trading at a forward discount, which of the following statements is most accurate? A. The forward points will be positive. B. The forward percentage
146k views
1 vote
If the base currency in a forward exchange rate quote is trading at a forward discount, which of the following statements is most accurate? A. The forward points will be positive. B. The forward percentage will be negative. C. The base currency is expected to appreciate versus the price currency

User Hassan Abdullah
by
5.1k points

1 Answer

3 votes

Answer:

The answer is B, the forward percentage will be negative

Step-by-step explanation:

Firstly, to define the exchange rate, the exchange rate is the amount of money a single unit of another superior or lesser currency will purchase.Therefore, the root money value trading at an upward discount indicates that one (1) unit of the root money value cost less in the forward direction than when it is static. That is, when the money value exchange rate is moving forward, the rate is lesser compared to when it is static.

User Pocokman
by
5.4k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.7m questions

7.4m answers

Other Questions

_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
Ensuring that an individual is who they claim to be is the function of _____. select one: a. confidentiality b. authorization c. availability d. authentication e. nonrepudiation
The current market price for good y is above the equilibrium price, and then the price of a subsitute good, x, increases. the demand curve for good y shifts as a result. what is the likely outcome of the
Link Copied!