Suppose that the 1-year forward rate of dollar per Swiss franc is $0.42,the current spot rate $/SFr is $0.40,and the expected future spot rate $/SFr is $0.45.The forward premium equals to:
A) - 7.5%
B) 5%
C) 6.67%
D) 12.5%

Question

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The Answer of Suppose that the 1-year forward rate of dollar per Swiss franc is $0.42,the current spot rate $/SFr is $0.40,and the expected future spot rate $/SFr is $0.45.The forward premium equals to:
A) - 7.5%
B) 5%
C) 6.67%
D) 12.5%

Suppose That the 1-Year Forward Rate of Dollar Per Swiss