A ________ Strategy Replicates the Forward Contract by Borrowing in One

question 5

Multiple Choice

A ________ strategy replicates the forward contract by borrowing in one currency,converting to the other currency,and investing in the new currency.

• A)cash-and-carry
• B)futures
• C)forward
• D)foreign investment
• E)covered interest

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Definitions:

Conversations

The informal exchange of ideas by spoken words between two or more people.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses, lasting up to several seconds.

Tone

In literature, the attitude of a writer toward the subject or audience; in music, a specific pitch or quality of sound.

Information-Processing Model

A cognitive approach comparing the human mind to a computer, focusing on how information is taken in, processed, stored, and retrieved.