Question: For a U . S . trader working with American quotes, if the forward price is higher than the spot price Multiple Choice the currency
For a US trader working with American quotes, if the forward price is higher than the spot price
Multiple Choice
the currency is trading at a premium in the forward market.
the currency is trading at a discount in the forward market.
then you should buy at the spot, hold on to it and sell at the forwardits a builtin arbitrage.
all of the options
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