Final answer:
The annualized forward premium or discount of the Czech koruna (CZK) is 16.22%.
Step-by-step explanation:
The 90-day forward rate for the Czech koruna (CZK) is $0.052, while the current spot rate of the CZK is $0.05. To calculate the annualized forward premium or discount of the CZK, we can use the formula:
Forward Premium/Discount = (Forward Rate - Spot Rate) / Spot Rate x (365 / Number of Days)
Plugging in the provided values, we get:
Forward Premium/Discount = ($0.052 - $0.05) / $0.05 x (365 / 90)
Simplifying the equation gives us:
Forward Premium/Discount = 0.04 x 4.055
Therefore, the annualized forward premium or discount of the CZK is 0.1622 or 16.22%.