CFA Practice Question

There are 341 practice questions for this study session.

CFA Practice Question

If the spot Japanese yen were sold at $0.007960, whereas the 180-day forward yen were priced at $0.008184, what would be the annualized forward premium?
A. 5.63%
B. 5.47%
C. 2.82%
Explanation: Forward premium annualized = [(0.008184 -0.007960)/0.007960] x 360/180 = 0.0563 = 5.63%

User Contributed Comments 1

User Comment
janis36 Should we ignore compounding?
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