In: Finance
Which of the following statements is not correct about Exchange traded funds (ETFs)?
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The spot and 180day forward rates for the euro are $1.3310 and $1.3402, respectively. The euro is said to be selling at a forward
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1.
ETFs limit diversification benefits
2.
=(1.3402/1.3310-1)*360/180
=1.3824%
Euro is selling at a forward premium of 1.4%