Alright so I know this is review from prior levels, but it randomly shows up in some solutions so I just want to check on this (not sure where exactly it’s in the texts).
Forward Premium/Discount = (F - S) / S (quotes given in DC/LC)
If the solution is a POSITIVE number, then is the DC or LC at a premium/discount? And does this imply that the DC or LC will depreciate/appreciate?
I know this is very basic, but it’s been a VERY long day.