Answer: a. discount; 1.0
Explanation:
When the forward rate is higher than the spot rate, the rate is said to be a Premium. When the opposite holds true then the rate is said to be a discount.
Calculating the rate;
= [tex]\frac{1.515-1.5}{1.515}[/tex]
= 0.99
= 1.0
Forward rate is lower so this is a discount.
