Multiple Choice
If the spot rate for Swiss francs is $.6658/franc and the six month forward rate is $.6637/franc, the market is indicating that the Swiss franc is expected to:
A) strengthen relative to the dollar.
B) weaken relative to the European currency.
C) lose value relative to the dollar over the next 6 months.
D) gain value relative to the dollar over the next 6 months.
Correct Answer:
Verified
Correct Answer:
Verified
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