If Investors Can Cover Themselves in the Forward Market, They

Multiple Choice

If investors can cover themselves in the forward market, they will take advantage of interest rate differentials by:

A) buying assets (lending) denominated in the high-interest rate currency, and selling assets (borrowing) in the low-interest rate currency.
B) removing funds from both investments.
C) turning over their investment portfolio to an expert in one of the two nations.
D) selling assets denominated in high-interest rate currency and buying assets in the low-interest rate currency.