The SF/$ spot exchange rate is SF1.25/$ and the 180 day forward exchange rate is SF1.30/$. The forward premium (discount) is A. the dollar trading at a 4% premium to the Swiss franc for delivery in 180 days. B. the dollar trading at an 8% premium to the Swiss franc for delivery in 180 days. C. the dollar trading at a 4% discount to the Swiss franc for delivery in 180 days. D. the dollar trading at an 8% discount to the Swiss franc for delivery in 180 days.
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