The following exchange rate quotations are given: Spot C$/U$ = 1.2875 and 3- month fwd. C$/U$ = 1.2552. Obtain the premium (discount) on Canadian Dollar.
a. 10.29% premium
b. 3.23% premium
c. 2.57% discount.
d. 10.03% discount.
e. None of the above answers is correct.
