If a Foreign Country's Interest Rate Is Similar to the U.S

Multiple Choice

If a foreign country's interest rate is similar to the U.S. rate, the forward rate premium or discount will be ____, meaning that the forward rate and the spot rate will provide ____ forecasts.​

A) ​substantial; similar
B) ​substantial; very different
C) ​close to zero; similar
D) ​close to zero; very different