If the Euro Is Selling at a Premium Relative to the USD

question 28

Multiple Choice

If the euro is selling at a premium relative to the USD in the forward market,is the forward price of USD /EUR larger or smaller than the spot price of the USD /EUR?

• A) larger
• B) smaller
• C) indeterminate
• D) the same

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Definitions:

Industry Attractiveness

The desirability of an industry to firms and investors, based on factors like profitability, growth potential, and competition levels.

Organizational Resources

Assets, capabilities, processes, employee time, information, and knowledge that an organization controls, useful for creating and implementing strategies.

Tangible Resources

Physical and material assets owned by a business, such as buildings, machinery, and inventory.

Intangible Resources

Non-physical assets owned by a business, such as intellectual property, brand reputation, and customer relationships.