Consider the Following: If the Market Futures Price Is

question 31

Multiple Choice

Consider the following: If the market futures price is 1.69 A$/$, how could you arbitrage?

• A)Borrow Canadian dollars in Canada, convert them to dollars, lend the proceeds in the United States, and enter futures positions to purchase Canadian dollars at the current futures price.
• B)Borrow U.S.dollars in the United States, convert them to Canadian dollars, lend the proceeds in Canada, and enter futures positions to sell Canadian dollars at the current futures price.
• C)Borrow U.S.dollars in the United States, invest them in the U.S., and enter futures positions to purchase Canadian dollars at the current futures price.
• D)Borrow Canadian dollars in Canada and invest them there, then convert back to U.S.dollars at the spot price.

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Definitions:

Negotiator

A negotiator is an individual who is involved in discussions between two or more parties with the goal of reaching an agreement or resolving a dispute.

Positive Consequences

Beneficial outcomes that result from certain actions or behaviors, often serving as incentives or rewards.

Negative Consequences

Unfavorable or harmful outcomes resulting from an action, decision, or situation.

Deceptive Negotiation Tactics

Techniques used in bargaining that involve misleading or tricking the other party to gain an advantage.