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# What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102/$a wrote... Posts: 1892 Rep: 7 years ago What was the annualized forward premium on the pound if the spot rate on May 6, 2011 was £0.6102/$ and the 180 day forward rate was £0.5836/\$?
A) 18.23%
B) 8.72%
C) 9.12%
D) 4.56%
Textbook

## Fundamentals of Multinational Finance

Edition: 5th
Authors:
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noxx53noxx53
wrote...
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Posts: 1890
Rep:
7 years ago

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boland Author
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 Pleasure is all mine
Anonymous
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3 months ago
 Help! The answer is missing an explanation...
Anonymous
wrote...
3 months ago
 Here's a similar question and its solution.Solution:Annualised forward premium on pound=((1/spot pound per dollar)/(1/forward pound per dollar)-1)*360/forward maturity=((1/0.5)/(1/0.5156)-1)*360/180=6.24% Attached file  Thumbnail(s): You must login or register to gain access to this attachment.
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