When the Futures Price on Euros Is Below the Forward

question 126

Multiple Choice

When the futures price on euros is below the forward rate on euros for the same settlement date, astute investors may attempt to simultaneously ____ euros forward and ____ euro futures.

• A) sell; sell
• B) buy; sell
• C) sell; buy
• D) buy; buy

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Definitions:

Physical Attributes

The observable physical characteristics of an individual, including height, body shape, skin color, hair, and facial features.

Markers

Distinctive signs or symbols that identify or classify individuals or groups based on characteristics such as race, class, or gender.

Social Construction

The idea that the characteristics, meanings, and values ascribed to people, objects, or concepts are created through social interactions and agreements.

Reconstructed

Referring to something that has been built or formed again, especially after being damaged or destroyed.