Homework answers / question archive / The 1-year interest rates in Norway, ????, is equal to 3%; - The 1-year interest rates in the US, ??? is equal to 1%; - Spot exchange rate is equal to ? ( ??? ???) = ??? ??? 8; - The 1-year forward rate is ? ( ??? ???) = ??? ??? 8

The 1-year interest rates in Norway, ????, is equal to 3%; - The 1-year interest rates in the US, ??? is equal to 1%; - Spot exchange rate is equal to ? ( ??? ???) = ??? ??? 8; - The 1-year forward rate is ? ( ??? ???) = ??? ??? 8

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The 1-year interest rates in Norway, ????, is equal to 3%; - The 1-year interest rates in the US, ??? is equal to 1%; - Spot exchange rate is equal to ? ( ??? ???) = ??? ??? 8; - The 1-year forward rate is ? ( ??? ???) = ??? ??? 8.5

Compute the forward premium in percentage points. Is the NOK trading at a premium or at a discount?