For a us trader working in american quotes if the

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64. For a U.S. trader working in American quotes, if the forward price is higher than the spot price A. the currency is trading at a premium in the forward market. B. the currency is trading at a discount in the forward market. C. then you should buy at the spot, hold on to it and sell at the forward—it's a built-in arbitrage. D. all of the above—it really depends if you're talking American or European quotes.
Topic: The Forward Market 65. The forward market
Topic: The Forward Market 66. The $/CD spot bid-ask rates are $0.7560-$0.7625. The 3-month forward points are 12-16. Determine the $/CD 3-month forward bid-ask rates.
Topic: Forward Rate Quotations 67. Restate the following one-, three-, and six-month outright forward American term bid-ask quotes in forward points: 5-11
Chapter 05 - The Market for Foreign Exchange Topic: Forward Rate Quotations
68. If one has agreed to buy foreign exchange forward A. you have a short position in the forward contract. B. you have a long position in the forward contract. C. until the exchange rate moves, you haven't made money, so you're neither short nor long. D. you have a long position in the spot market. Topic: Long and Short Forward Positions
69. The current spot exchange rate is $1.55/€ and the three-month forward rate is $1.50/€. You enter into a short position on €1,000. At maturity, the spot exchange rate is $1.60/€. How much have you made or lost?
Topic: Long and Short Forward Positions 70. The current spot exchange rate is $1.55/€ and the three-month forward rate is $1.50/€. Based on your analysis of the exchange rate, you are confident that the spot exchange rate will be $1.52/€ in three months. Assume that you would like to buy or sell €1,000,000. What actions do you need to take to speculate in the forward market? Topic: Long and Short Forward Positions
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Chapter 05 - The Market for Foreign Exchange

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