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You observe the following two quotes:

CHF/USD = 1.1051 - 53


(CHF/USD) = 1.1058 - 68

Compute the Forward Premium/Discount and provide an economic interpretation of your results (that is, do you expect the USD to appreciate, depreciate, or to remain unchanged over the next 30 days?).

Top Answer

Forward premium for Bid rate = 0.76 %... View the full answer

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