A ________ Strategy Replicates the Forward Contract by Borrowing in One

question 23

Multiple Choice

A ________ strategy replicates the forward contract by borrowing in one currency, converting to the other currency and investing in the new currency.

• A) cash-and-carry
• B) futures
• C) forward
• D) none of the above

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Definitions:

Clear And Convincing Proof

A standard of evidence that requires a high degree of belief that something is true, more than a preponderance of the evidence but less than proof beyond a reasonable doubt.

Police Power

The capacity of a state to regulate behaviors and enforce order within its territory for the betterment of the health, safety, morals, and general welfare of its inhabitants.

State Responsibility

The legal and moral obligation of a government to uphold and implement laws and to ensure public welfare and security.

Dangerous People

Individuals who are considered to pose a risk of harm or danger to others or society.