If the Current Spot Exchange Rate on the Euro Is

question 33

Multiple Choice

If the current spot exchange rate on the Euro is €0.7805/$ and the one year risk free rate for borrowing in dollars is 3% and 4% for borrowing in Euros,what should be the one year $/€ forward exchange rate?

• A) 1.2689
• B) 0.7881
• C) 1.2936
• D) 0.7730

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Definitions:

Conscientiousness

A personality trait marked by diligence, care, and discipline in pursuing goals.

Big Five

The five basic clusters of personality traits that remain quite stable throughout adulthood: openness, conscientiousness, extroversion, agreeableness, and neuroticism.

Trait Theory

A psychological model which suggests that human personality is composed of a number of broad traits or dispositional attributes.

Generativity

The psychological and social concept that involves contributing to society and the next generation's well-being, often associated with middle adulthood.