If the Current Exchange Value of the Dollar Is $1

Multiple Choice

If the current exchange value of the dollar is $1.25 per euro, then

A) European Investor #1 expects a dollar depreciation against the euro, but European Investors #2 and #3 expect a dollar appreciation.
B) European Investor #1 expects a dollar appreciation against the euro, but European #2 and #3 expect a dollar depreciation.
C) all three European investors expect that the dollar will depreciate against the euro.
D) all three European investors expect that the dollar will appreciate against the euro.