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Basic Question 9 of 14

What is the annualized forward premium if € are selling for $1.2268 and the 180-day forward market rate is $1.2432?

A. 2.64%
B. -2.64%
C. 2.67%

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Edward Liu

Edward Liu

Learning Outcome Statements

explain the arbitrage relationship between spot and forward exchange rates and interest rates, calculate a forward rate using points or in percentage terms, and interpret a forward discount or premium

CFA® 2024 Level I Curriculum, Volume 1, Module 8.