Suppose That Barclays Bank of the United Kingdom Expects the Exchange

Multiple Choice

Suppose that Barclays Bank of the United Kingdom expects the exchange rate to be $1.40 per pound at the end of the year.If today's exchange rate is $1.50 per pound,Barclays will

A) sell dollars today since it anticipates losses from buying dollars and holding them
B) buy dollars today since it anticipates profits from buying dollars and holding them
C) not buy dollars nor sell dollars because no profits can be realized
D) none of the above