If the forward rate of the euro per dollar is higher than the spot rate,the euro has a _____.
A) high spread
B) low spread
C) forward discount
D) forward premium

Name: If the forward rate of the euro per dollar is higher than the spot rate,the euro has a _____. A) high spread B) low spread C) forward discount D) forward premium
Brand: Quizplus
Rating: 4.8 (41 reviews)

Question

If the forward rate of the euro per dollar is higher than the spot rate,the euro has a _____.
A) high spread 
B) low spread 
C) forward discount 
D) forward premium

Quizplus · Accepted Answer

A forward discount occurs when the forward rate of a currency is lower than the spot rate, indicating that the currency is expected to depreciate in the future.

If the Forward Rate of the Euro Per Dollar Is