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    International Economics Study Set 2
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    Exam 18: Forward Exchange and International Financial Investment
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    When the Current $/£ Forward Rate Is Below the Current
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When the Current $/£ Forward Rate Is Below the Current

Question 19

Question 19

Multiple Choice

When the current $/£ forward rate is below the current spot rate, the pound is at a(n) _____.


A) forward premium
B) forward discount
C) covered parity
D) uncovered parity

Correct Answer:

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