What is meant by a currency trading at a discount

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What is meant by a currency trading at a discount or at a premium in the forward market?

Reference no: EM131113281

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What is implied about the trader''s beliefs by his prices : A CD/$ bank trader is currently quoting a small figure bid-ask of 35-40, when the rest of the market is trading at CD 1.3436-CD 1.3441. What is implied about the trader's beliefs by his prices?
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