USInvestments with a One-Year Maturity Can Be Made for 6

question 31

Multiple Choice

U.S.investments with a one-year maturity can be made for 6% and Swiss one-year investments can be made for 3%.If the spot exchange rate is Sf1.6/$,which of the following one-year forward exchange rates would convince you to invest in Switzerland?

• A) Sf1.55/$
• B) Sf1.60/$
• C) Sf1.65/$
• D) Sf1.70/$

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Definitions:

Insight Therapy

A form of psychotherapy that aims to bring a sudden awareness and understanding of one's own feelings, motivations, and behaviors.

Psychodynamic Therapy

Therapy deriving from the psychoanalytic tradition; views individuals as responding to unconscious forces and childhood experiences, and seeks to enhance self-insight.

Eclectic Approach

An approach to psychotherapy that uses techniques from various forms of therapy.

Cognitive-Behavioral Therapy

A form of psychotherapeutic treatment that focuses on changing patterns of thinking or behavior that are responsible for people's difficulties, thereby changing how they feel.