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Assume that the dollar is selling at a premium on the 30-day dollar/euro forward market. Which of the following is true of the foreign exchange dealers' market's expec…

Assume that the dollar is selling at a premium on the 30-day dollar/euro forward market. Which of the following is true of the foreign exchange dealers' market's expec…
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Assume that the dollar is selling at a premium on the 30-day dollar/euro forward market. Which of the following is true of the foreign exchange dealers' market's expectations about the dollar over the next 30 days?

User Ohmusama
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1 Answer

4 votes

Step-by-step explanation:

The dollar will appreciate against the euro because USD is selling at a premium in EURO to USD market.

User Philm
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