Final answer:
The forward premium on the US dollar as of January 1985 refers to the difference between the spot and forward exchange rates.
Investors in the forward market may have had different expectations than Jacques Bankir, driven by factors like economic indicators and interest rates. Differences in interest rates can drive differences in expectations according to the Interest Rate Parity.
Step-by-step explanation:
The forward premium on the US dollar as of January 1985 refers to the difference between the spot exchange rate (the current exchange rate) and the forward exchange rate (the exchange rate agreed upon today but for delivery at a future date).
The investors in the forward market may have had different expectations on the future exchange rate compared to Jacques Bankir. This could be driven by a variety of factors such as differences in their assessment of economic indicators, political events, or market sentiment.
According to the Interest Rate Parity (IRP), the differences in expectations can be driven by differences in interest rates between countries. If investors in the forward market expect higher interest rates in the US compared to other countries, they may anticipate a stronger US dollar in the future, resulting in a higher forward premium on the US dollar.