If $1 bought more yen with a spot exchange than with a 30-day forward exchange, it indicates the dollar is expected to depreciate against the yen in the next 30 days. When this occurs, we say the dollar is selling at a premium on the 30-day forward market.

Question

Quizplus · Accepted Answer

If $1 bought more yen with a spot exchange than with a 30-day forward exchange, it indicates foreign exchange dealers expected the dollar to depreciate against the yen in the next 30 days. When this occurs, we say the dollar is selling at a discount on the 30-day forward market.

If $1 Bought More Yen with a Spot Exchange Than