Question: please answer both!!! On June 1, 2022, the spot rate was 9098 EUR/ USD. The 5-month forward rate was 9024 EUR/USD on that date. What
On June 1, 2022, the spot rate was 9098 EUR/ USD. The 5-month forward rate was 9024 EUR/USD on that date. What is the full year forward premium or discount? A. 2.12\% forward discount B. 2.12% forward premium C. 1.95% forward discount D. 1.95\% forward premium QUESTION 18 For what does the Purchasing Power Parity theory suggest that exchange rates adjust? A. Infiation B. Interest Rates C. Export tariffs D. Tax rates
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