Multiple Choice
If a forecast indicates that the spot exchange rate will be higher than the forward rate on the maturity date of the forward contract:
A) a speculator will buy forward and sell spot upon delivery
B) a speculator will sell forward and sell spot upon delivery
C) a speculator will buy forward and buy spot upon delivery
D) a speculator will sell forward and buy spot upon delivery
Correct Answer:
Verified
Correct Answer:
Verified
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