trading the forward rate bias

[midro]

I have difficulties in understanding how trading the forward rate bias actually works, more specifically EOC 18, Reading 19 (currency mng): we have a carry trade on INR/USD, and it is mentioned that a higher forward premium for INR/USD would be most favorable for this strategy (answer B ). This is not very intuitive for me, can someone explain it in simple words?
Thanks!

 

[S2000magician]

A higher forward premium means that the interest rate differential is greater, so there’s more scope for profit.

 

[midro]

I think I’ve over analyzed the EOC question or something, because now your comment seems so obvious to me, and my question seems quite stupid Many thanks !

 

[S2000magician]

You’re welcome.