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    Forward premium/discount

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    If the spot rate of the Israel shekel is 6.00 shekels per dollar and the 180-day forward rate is 6.07 shekels per dollar, then what is the forward rate for the Israel shekel is selling at to the spot rate. (Percentage amount of premium or discount)

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    P = Forward Market Premium or Discount Percent = [( Forward - ...

    Solution Summary

    The solution explains how to calculate the forward premium/discount given the spot and forward rates, using step by step equations.