For an Investor Who Starts with Dollars and Wants to End

question 52

Multiple Choice

For an investor who starts with dollars and wants to end up with dollars in the future,which of the following choices is an example of uncovered international investment?

• A) Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy the foreign currency.
• B) Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy dollars.
• C) Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and then buy dollars at the future spot rate.
• D) Buy a dollar-denominated financial asset.

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Definitions:

Ionizing Radiation

High-energy radiation that can remove tightly bound electrons from the orbit of an atom, causing the atom to become charged or ionized.

Visible Light

Visible light is the portion of the electromagnetic spectrum that is visible to the human eye, encompassing wavelengths approximately from 380 to 750 nanometers.

Stationary Phase

The phase in chromatography that does not move, which can be a solid or a viscous liquid through which the sample moves.

HPLC Column

A cylinder filled with stationary phase used in high-performance liquid chromatography for separating chemical compounds in a mixture.