When the Futures Price Is Equal to the Spot Rate

Multiple Choice

When the futures price is equal to the spot rate of a given currency, and the foreign country exhibits a higher interest rate than the U.S. interest rate, astute investors may attempt to simultaneously ____ the foreign currency, invest it in the foreign country, and ____ futures in the foreign currency.

A) buy; buy
B) sell; buy
C) buy; sell
D) buy ; buy