A forward premium indicates: A. an expected increase in demand for the base currency. B. the interest
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A forward premium indicates:
A. an expected increase in demand for the base currency.
B. the interest rate is higher in the base currency than in the price currency.
C. the interest rate is higher in the price currency than in the base currency.
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C is correct To eliminate arbitrage opportunities the spot exchange rate S the forwar...View the full answer
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