If a forward discount is prevalent in U.S. dollars to Swiss francs, the forward rate is lower

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If a forward discount is prevalent in U.S. dollars to Swiss francs,

the forward rate is lower than the spot rate.

the forward rate is higher than the spot rate.

markets will expect the Swiss Franc to appreciate relative to the dollar.

the forward rate is lower than the spot rate and markets expect the Swiss franc to appreciate relative to the dollar.

Related Book For answer-question

Intermediate Financial Management

ISBN: 978-1111021573

10th Edition

Authors: Brigham, Daves

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Posted Date: Apr 02, 2019 10:22 AM

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If a forward discount is prevalent in U.S. dollars to Swiss francs, the forward rate is lower

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The forward rate is lower than the spot ... View the full answer

Intermediate Financial Management

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