Your physics homework can be a real challenge, and the due date can be really close - feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world's newest programming trends.
Get a free quote.
Check the website
for updates.
Receive your completed assignment.
 Easy as ABC! Just provide us with clear instructions and wait for the completed assignment.

# Answer on Economics of Enterprise Question for LaMarcus Streeter

Question #7223

2. If the spot rate of the Israeli shekel is 5.51 shekels per dollar and the 180-day forward rate is 5.97 shekels per dollar, then the forward rate for the Israeli shekel is selling at a ________________ to the spot rate.

a. premium of 8%
b. premium of 18%
c. discount of 18%
d. discount of 8%
e. premium of 16%

## Expert's answer

The answer is D.

As one can obtain more Israeli shekels for a dollar in
the forward market, the forward currency is selling at a discount to the spot
rate. Thus, the amount of the discount is calculated as: (Forward rate − Spot
rate)/Spot rate.

% Discount = 8.35%

No comments

## Share with friends

Get homework help with Assignment Expert:
More subjects:
It was perfect thank you so much.
Albert on April 2013
Pay us safely via PayPal
We deliver professional assignment and homework help for students in USA, UK, Canada, Australia, AE and all over the world.
Terms and Conditions | Privacy Policy | Service
© 2014 BrainRouter LTD. All rights reserved.