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Suppose That: What Is the Annualized %Age Discount or Premium

Question 68

Multiple Choice

Suppose that: Suppose that: What is the annualized %age discount or premium of the Canadian Dollar on the U.S.Dollar? A) 1.10% premium B) 1.10% discount C) 2.20% premium D) 2.20% discount The Canadian Dollar is at a forward discount.It takes more Canadian Dollars to buy one U.S Dollar in the forward market than in the spot market. What is the annualized %age discount or premium of the Canadian Dollar on the U.S.Dollar?


A) 1.10% premium
B) 1.10% discount
C) 2.20% premium
D) 2.20% discount The Canadian Dollar is at a forward discount.It takes more Canadian Dollars to buy one U.S Dollar in the forward market than in the spot market.

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