Pounds in the forward market are selling

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Reference no: EM131354189

The spot exchange rate is 1.57 dollars per pound. The 30-day forward exchange rate is .6211 pounds per dollar. Therefore, pounds in the forward market are selling at a ________ to the current spot rate.

a. .958 premium

b. .958 discount

c. .04 discount

d. .04 premium

Reference no: EM131354189

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