Suppose That an Investor Disagrees with Market Expectations and Feels

question 16

Multiple Choice

Suppose that an investor disagrees with market expectations and feels that the forward rate prevailing in the market is higher than what it should be, then the investor can make profit by

• A) selling a bond now and buying it up later.
• B) selling a bond now
• C) Buying a bond now
• D) Buying a bond now and selling it later.

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Definitions:

Off-The-Job Instructional

Training or learning activities conducted outside the normal work environment to equip employees with specific skills or knowledge.

Personality Conflicts

Disagreements or disputes that arise due to differences in individuals' characteristics, beliefs, or attitudes.

Role Play

An educational or training activity where participants act out specific roles to simulate a situation, often to develop skills, strategies, or understanding of various perspectives.

Discussion Method

An educational technique that involves interactive dialogue between participants, commonly used to explore concepts or issues and encourage critical thinking.