Multiple Choice
If a foreign exchange speculator expects the spot rate of the dollar nine months from today to be lower than today's forward rate on the dollar for delivery in nine months,she may
A) buy dollars in the spot market nine months from today.
B) sell dollars in the spot market nine months from today.
C) sell dollars forward today and buy them in the spot market nine months from today.
D) buy dollars forward today and resell them in the spot market nine months from today.
Correct Answer:
Verified
Correct Answer:
Verified
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