question 5\nthe canadian dollar is said to be selling at a ______ if the spot price is $1.05 and the nine…

question 5\nthe canadian dollar is said to be selling at a ______ if the spot price is $1.05 and the nine - month forward rate is $1.00.\nforward spread\nforward premium\nnone of the above\nforward discount

question 5\nthe canadian dollar is said to be selling at a ______ if the spot price is $1.05 and the nine - month forward rate is $1.00.\nforward spread\nforward premium\nnone of the above\nforward discount

Answer

Brief Explanations:

In foreign - exchange markets, when the forward rate of a currency is lower than its spot rate, the currency is said to be selling at a forward discount. Here, the spot price of the Canadian Dollar is $1.05 and the nine - month forward rate is $1.00. Since the forward rate is lower than the spot rate, it is a forward discount.

Answer:

D. forward discount