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The Risk of an Investment in a Eurodollar Deposit Is

Question 1

Multiple Choice

The risk of an investment in a Eurodollar deposit is partially due to


A) the fact that these instruments only pay interest at maturity.
B) the fact that the center of the Eurodollar market is in London.
C) the presence of some foreign exchange risk.
D) the fact that the majority of these deposits are not in the form of U.S. dollars.

Correct Answer:

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