What is the implied forward premium or discount of the yen

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Question 1: The current five-year Euro yen rate is 6% per annum (compounded annually). The five-year Eurodollar rate is 8.5%. What is the implied forward premium or discount of the yen (over the current spot rate) for a five-year forward contract?

Select one:

Option a. 11.00% discount

Option b. 12.36% premium

Option c. 18.46% discount

Option d. 4.17% premium

Reference no: EM132512799

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