Compute the forward discount or premium for the mexican peso

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Reference no: EM13936201

1. Currency options. Differentiate between a currency call option and a currency put option.

2. Forward premium. Compute the forward discount or premium for the Mexican peso whose 90-day for- ward rate is £0.05 and spot rate is £0.051. State whether your answer is a discount or premium.

Reference no: EM13936201

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