Suppose that: $$\begin{array}{l}
\begin{array} {lll }
\text {U.K. (pound)}
&\frac { \text { Spot Rate } } { 1.5331 }
&\frac { 3 \text { Month Forward Rate } } { 1.5372 }
&\frac { 1 \text { Year Forward Rate } } { 1.5502 }
\end{array}
\end{array}$$ What is the annualized percentage discount or premium of the U.K.pound on the U.S.Dollar?
A)1.10% premium
B)1.10% discount
C)2.20% premium
D)2.20% discount

Question

Suppose that: $$\begin{array}{l}
\begin{array} {lll } 
\text {U.K. (pound)}
&\frac { \text { Spot Rate } } { 1.5331 }
&\frac { 3 \text { Month Forward Rate } } { 1.5372 }
&\frac { 1 \text { Year Forward Rate } } { 1.5502 }
\end{array}
\end{array}$$ What is the annualized percentage discount or premium of the U.K.pound on the U.S.Dollar?
A)1.10% premium
B)1.10% discount
C)2.20% premium
D)2.20% discount

Quizplus · Accepted Answer

The Answer of Suppose that: $$\begin{array}{l}
\begin{array} {lll } 
\text {U.K. (pound)}
&\frac { \text { Spot Rate } } { 1.5331 }
&\frac { 3 \text { Month Forward Rate } } { 1.5372 }
&\frac { 1 \text { Year Forward Rate } } { 1.5502 }
\end{array}
\end{array}$$ What is the annualized percentage discount or premium of the U.K.pound on the U.S.Dollar?
A)1.10% premium
B)1.10% discount
C)2.20% premium
D)2.20% discount

Suppose That What Is the Annualized Percentage Discount or Premium of the