Question: Describe the difference between a forward rate selling at a discount and selling at a premium. If the spot rate between the U.S. dollar and

Describe the difference between a forward rate selling at a discount and selling at a premium. If the spot rate between the U.S. dollar and the UK pound is $1 = 0.7549 and the three-month forward rate is $1 = 0.7678, is the forward pound selling at a discount or a premium?

What are the risks businesses face when they make investments in foreign countries?

How can businesses making investments in foreign countries can minimize those risks you have identified in (b)? Give two examples and explain in full detail.

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