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Suppose it is January 1, 1998 and spot pounds are selling at $1.7342, while 90‑day forward pounds are selling at $1.7156. At the same time, DM spot and 90‑day forward rates are $0.6138 and $0.6014, respectively. According to these quotes the Group of answer choices pound is selling at a 3.87% forward discount relative to the DM pound is selling at a 2.37% forward premium relative to the DM DM is selling at a 0.97% forward discount relative to the pound DM is selling at a 1.54% forward premium relative to the pound
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Suppose it is January 1, 1998 and spot pounds are selling at $1.7342, while 90‑day forward pounds ar...
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