If a Foreign Exchange Speculator Expects the Spot Rate of the Dollar

question 27

Multiple Choice

If a foreign exchange speculator expects the spot rate of the dollar nine months from today to be lower than today's forward rate on the dollar for delivery in nine months,she may

• A)buy dollars in the spot market nine months from today.
• B)sell dollars in the spot market nine months from today.
• C)sell dollars forward today and buy them in the spot market nine months from today.
• D)buy dollars forward today and resell them in the spot market nine months from today.

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Definitions:

Disregard Needs

Ignoring or neglecting the necessities or requirements of someone or something.

Communication "Do's"

Recommended practices that enhance effective communication, including clarity, empathy, and active listening.

Appearance

The way that someone or something looks to others, including aspects of physical presentation and grooming.

Critical Thinking

The ability to analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments, and solve problems.