Question: 13. What is the difference between a forward rate and a future spot rate? I a. A forward rate is the amount someone will agree

13. What is the difference between a forward rate and a future spot rate? I a. A forward rate is the amount someone will agree today to pay for something at a specified future time b. The future spot rate is what someone will agree to pay at that future time c. Both a and b d. Neither a norb ANS: 14. If GBP/USD spot rate is 1.3400, and the one-year GBP rates are 2%, and the one-year USD rates are 3%, what is the one-year GBP/USD forward price? a. 1.3513 b. 1.3270 C. 1.3400 d. 1.2415 ANS: 15. If the USD/JPY spot rate is 115.00, and the one-year rate JPY rates are 1% and the one-year USD rates are 2%, what is the one-year USD/JPY forward price? a. 115.54 b. 112.57 c. 113.87 d. 115.00 ANS

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