The swiss franc is selling in the spot market for 060 while


The Swiss franc is selling in the spot market for $0.60, while in the 90-day forward market it sells for $ 0.62.

a. Is the dollar selling at a premium or discount?

 

b. What is the forward premium (discount) on the franc (at an annual rate)?

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Financial Management: The swiss franc is selling in the spot market for 060 while
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