Consider a U

Multiple Choice

Consider a U.S. investor with a one-year investment horizon who can either deposit money in a U.S. bank for investment or deposit money in a bank in a foreign country. To determine the proper choice, the investor must know ________.

A) the taxes paid in both countries on investment income.
B) the spot exchange rate between U.S. dollars and the foreign country's currency.
C) the spot exchange rate one year from now between U.S. dollars and the foreign currency.
D) All of these