Multiple Choice
When the futures price is above the forward rate, astute investors may attempt to simultaneously buy a currency forward and sell futures in that currency. These actions would place ____ pressure on the forward rate and ____ pressure on the futures rate.
A) upward; downward
B) upward; upward
C) downward; upward
D) downward; downward
Correct Answer:
Verified
Correct Answer:
Verified
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