Question: 4.4) Which two statements regarding forward rates are correct? A Forward rates are determined by interest rate differentials between the two currencies involved. B If

4.4) Which two statements regarding forward rates are correct? A Forward rates are determined by interest rate differentials between the two currencies involved. B If the interest rate in the US is lower than in the Eurozone, the USD quotes at a premium (i.e. the EUR/USD forward rate is higher than the spot rate.) C Hedging receivable from a high inflation & high interest rate countries is more expensive because of the forward rate. D Forward rates are sometimes quoted as the spread between bid and ask price.

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