Multiple Choice
In which of the following relationships between the expected future spot rate [E(e) ] of a foreign currency and the current forward rate (efwd) of a foreign currency would a Speculator have an incentive to sell foreign currency in the forward market?
A) E(e) < efwd
B) E(e) > efwd
C) E(e) = efwd
d. E(e) = (1/efwd)
Correct Answer:
Verified
Correct Answer:
Verified
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