The 3 Month Forward Rate Between British Pound and the Swiss

question 29

Multiple Choice

The 3 month forward rate between British pound and the Swiss franc is £0.5.A speculator predicts the spot rate in three months to be £0.51 and has £1,000,000 for speculation.The speculator should not

• A) get a long position on British pounds
• B) get a short position on Swiss francs
• C) speculate
• D) get a long position on Swiss francs

Explain the factors influencing the effectiveness of punishment and behavior suppression.

Appreciate the application of behavioral theories to real-world behavior modification.

Understand the implications of reward and punishment anticipation in behavior modification.

Recognize the significance of response rates and reinforcement schedules in shaping behavior.

---

Definitions:

Deductive Reasoning

A reasoning strategy where a judgment is drawn from the alignment of various propositions typically considered factual.

Inductive Reasoning

A method of reasoning in which specific observations or data are analyzed to form a general conclusion or principle.

Abductive Reasoning

A type of logical inference which begins with an observation then seeks to find the simplest and most likely explanation.

Retroductive Reasoning

A form of reasoning that starts from an observed effect and works backward to hypothesize a cause; also known as abductive reasoning.