If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro,...

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If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro,...

If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro, it means,

1)	The Yen is selling at a premium of 16%

2)	The Yen is selling at a premium of 10.71%

3)	The Yen is selling at a discount of 10.71%

4)	The Yen is selling at a discount of 12%.

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Answer 1

Answer #1

Ans) The Yen is selling at the premium of 10.71%

If forward rate is higher than current spot rate then it is the current premium. The difference between Forward and Spot rate shows the premium.

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Answer 2

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If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro,...

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If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro,...

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Add Answer to: If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro,...

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If the forward value of the Euro is 100 yen/Euro, and the spot is 89.29 yen/Euro,...