Answered

At Westonci.ca, we connect you with the answers you need, thanks to our active and informed community. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

If the yen is selling at a premium relative to the euro in the forward market, is the forward price of EUR per JPY larger or smaller than the spot price of EUR per JPY?

Sagot :

abiolataiwo2015

Answer:

The forward price of EUR per JPY will be LARGER

Explanation:

Based on the information in a situation where yen is selling at a premium which is an additional amount charged in the forward market, it means that forward price of EUR per JPY which is the price that has been negotiated and agreed upon will be LARGER than the spot price of EUR/JPY which is the market current price to be traded on the spot.

Therefore The forward price of EUR per JPY will be LARGER.

Thank you for your visit. We are dedicated to helping you find the information you need, whenever you need it. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.