When executing trades on spot or forward basis

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When executing trades on a spot or forward basis, premiums and discounts are involved. Circle or highlight the appropriate term:

The forward rate can exceed the spot rate on a given date, in which case the foreign currency is said to be selling at a premium or discount in the forward market,

or the forward rate can be less than the spot rate, in which case it is selling at a premium or discount.

Reference no: EM131490342

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