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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:

Unethical Behavior

Unethical behavior refers to actions that go against moral principles and standards, often causing harm or disadvantaging others in the social or professional realm.

Competition

The presence of multiple companies or entities in the same marketplace, vying for the same customers or market share.

Environmental Scanning

The process of systematically collecting information about external factors that can impact an organization's success.

Preannounced

The act of informing the public or specific groups about a product, event, or decision before it officially happens.

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