If the Spot Rate for Swiss Francs Is $0

question 52

Multiple Choice

If the spot rate for Swiss francs is $0.6658/franc and the 180-day forward rate is $0.6637, the market is indicating that the Swiss franc is expected to _____.

• A) strengthen relative to the dollar
• B) weaken relative to the ECU
• C) lose value relative to the dollar over the next 6 months
• D) gain value relative to the dollar over the next 6 months

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Definitions:

Antiaromatic

Compounds that have conjugated pi electrons in a cyclic ring, destabilized by not following Huckel's rule for aromatic stability.

Nonaromatic

Refers to compounds that do not fulfill the requirements for aromaticity, lacking a cyclic, planar structure with delocalized pi electrons.

Indole

A heterocyclic compound containing a benzene ring fused to a pyrrole ring, notable for its presence in many biologically active molecules.

M-iodobenzoic Acid

An iodinated benzoic acid derivative, specifically with the iodine atom in the meta position relative to the carboxyl group, used in organic synthesis.