​When the Futures Price Is Equal to the Spot Rate

question 25

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.

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Definitions:

Telomeres

The protective caps located at the ends of chromosomes, which shorten with each cell division and are linked to aging and cell death.

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA), carrying genetic information.

Age

The amount of time that something or someone has existed; a critical factor in determining physical, psychological, and social attributes.

Menstrual Period

The phase of the menstrual cycle where bleeding occurs from the uterus, typically lasting a few days and marking the shedding of the uterine lining.