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Question
Which of the following indicates that the dollar is selling at a discount on the 30-day forward market?
A. When the spot exchange rate is $1 = 120 currently and $1 = 130 after 30 days
B. When the spot exchange rate is $1 = 120 currently and $1 = 100 after 30 days
C. When the current spot exchange rate is $1 = 120 and the 30-day forward rate is $1 = 110 after 30 days
D. When the current spot exchange rate is $1 = 120 and the 30-day forward rate is $1 = 130 after 30 days
E. When the current spot exchange rate is $1 = 120 and the 30-day forward rate is $1 = 120 after 30 days
Answer
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