If the One-Year Forward Rate for the Euro Is $1

question 4

Multiple Choice

If the one-year forward rate for the euro is $1.07, while the current spot rate is $1.05, the expected percentage change in the euro is ____ percent.

• A)1.90
• B)2.00
• C)-1.87
• D)none of the above

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Definitions:

Circulatory System

The body system that functions in internal transport and protects the body from disease.

Cephalopods

Cephalopods are a class of mollusks that include squid, octopuses, and cuttlefish, known for their advanced nervous systems, complex eyes, and ability to change color and texture.

Open Circulatory System

A type of circulatory system found in some invertebrates where blood flows freely in the body cavity, bathing organs directly in blood.

Polyp

A hydralike animal; the sessile stage of the life cycle of certain cnidarians. Compare with medusa.