What is the discount rate 100%?

Take the foreign exchange rate as an example,

When the forward exchange rate is higher than the spot exchange rate, we call it the forward exchange rate of this foreign exchange premium.

On the contrary, when the forward exchange rate is lower than the spot exchange rate, we call the forward exchange rate of this foreign exchange a discount.

When the two are equal, it is called parity.

The premium rate is relative to the spot exchange rate When the forward exchange rate is twice the spot exchange rate, we call it premium 100%.

But the increase of premium 100% is really rare.

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