In the Case Where the Spot and Forward Rates Are

question 4

Multiple Choice

In the case where the spot and forward rates are equal,the currency is said to be selling

• A)profitably.
• B)flat.
• C)normal.
• D)risky.

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Definitions:

Business Plan

A document projecting a firm’s physical and financial performance into the future. Business plans can be short or long range. Long-range plans are “strategic” and tend to be more verbal than financial. Shorter-term plans are described as “operational,” and detail the more routine running of the business.

Dividend Policy

A company's strategy or guidelines dictating how often dividends will be paid to shareholders, the form of the dividend, and how much will be distributed.

Contingencies

Potential events or conditions that may occur in the future and could impact the financial performance or operations of a business.

Business Plan

A formal written document detailing the goals of a business, the strategy for achieving them, and the timeframe for success.