Question: Hello, is it possible for someone to explain me how to find the good result ? Thaanks The current fiveyear Euro yen rate is 6%

Hello, is it possible for someone to explain me how to find the good result ? Thaanks

The current fiveyear Euro yen rate is 6% per annum (compounded annually). The fiveyear Eurodollar rate is 8.5%. What is the implied forward premium or discount of the yen (over the current spot rate) for a fiveyear forward contract?

Select one:

a.18.46% discountb.12.36% premiumc.4.17% premiumd.11.00% discount

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