Assume the U

question 83

Multiple Choice

Assume the U.S. interest rate is 2 percentage points higher than the Swiss rate, and the forward rate of the Swiss franc has a 4 percent premium. Given this information:​

• A)Swiss investors who attempt covered interest arbitrage earn the same rate of return as if they invested in Switzerland.
• B)U.S. investors who attempt covered interest arbitrage earn a higher rate of return than if they invested in the United States.
• C)A and B
• D)none of the above

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Definitions:

Ft. Pillow Massacre

A controversial event during the American Civil War in which African American Union soldiers and civilians were killed by Confederate forces after surrendering at Fort Pillow, Tennessee, in 1864.

Black Soldiers

African American military service members who have served in various capacities and conflicts throughout U.S. history, often facing segregation and discrimination.

Confederate Forces

Military forces of the Confederacy during the American Civil War, fighting against the Union.

Battle Of Vicksburg

A significant battle during the American Civil War, where Union forces led by General Ulysses S. Grant besieged and captured Vicksburg, Mississippi, in 1863, thus gaining control of the Mississippi River.