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​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.


Definitions:

Light Sensitivity

An increased susceptibility or responsiveness to light, which can cause discomfort or the need to squint or close the eyes in bright conditions.

Color Deficient

A condition characterized by difficulty in distinguishing between different colors, commonly referred to as color blindness.

Red-Sensitive

Related to the capacity to perceive or be affected by the red spectrum of light, often used in the context of visual perception.

Green-Sensitive

Referring to cells or mechanisms in the visual system that are particularly responsive to green wavelengths of light.

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