currency trade at premium or discount

if US doller per canadian dollow is quoted at a spot rate of 0.777, the US dollar is at discount or premium? how to judge it? Thanks.

you need the fwd to figure that out, can go just by the spot

if US doller per canadian dollow is quoted at a spot rate of 0.777 and a three month forward is 0.7799, the US dollar is at discount or premium? how to judge it? Thanks. lola Wrote: ------------------------------------------------------- > you need the fwd to figure that out, can go just > by the spot

1 CAD = .777 Spot 1 CAD = .7799 Forward 1 CAD gets more USD in the Forward, when compared to the Spot. So CAD is at a Premium So USD is at a Discount. Amount of Discount: (.7799 - .777) / .777 * 4 = 1.49%