Assume That the Dollar Is Selling at a Premium on the 30-Day

question 56

Multiple Choice

Assume that the dollar is selling at a premium on the 30-day dollar/euro forward market. What is true of the foreign exchange dealers' market's expectations about the dollar over the next 30 days?

• A) The dollar will depreciate against the euro.
• B) The market is undecided about the direction of currency movement.
• C) The dollar will appreciate against the euro.
• D) The dollar/euro exchange rate will be steady.
• E) The dollar will buy more euros with a spot exchange than with a 30-day forward exchange.

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Definitions:

Allopolyploidy

A form of polyploidy where the chromosomes are derived from different species, leading to hybrid organisms.

Reproductively Isolated

A state in which different species or populations cannot interbreed successfully under natural conditions, leading to the development of distinct species.

Species Diversity

A measure of the relative importance of each species within a community; represents a combination of species richness and species evenness.

Allopatric Speciation

Allopatric speciation is an evolutionary process in which biological populations become reproductively isolated and diverge into separate species due to geographical separation.