Question: Assume that the three-month forward rate for the euro is $1.367 and the spot rate is $1.364. What is the forward premium or discount on

Assume that the three-month forward rate for the euro is $1.367 and the spot rate is $1.364. What is the forward premium or discount on the euro?

a. 0.88% premium.

b. 0.88% discount.

c. 0.23% premium.

d. 0.23% discount.

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