If This Lower Than the Riskfree Rate in a Foreign

question 27

Multiple Choice

If this lower than the riskfree rate in a foreign country, a foreign currency future will

• A) have a price equal to the current spot price.
• B) be priced at less than the current spot price.
• C) not be traded in the U.S.
• D) have a positive carry cost.

---

Definitions:

Pitch

Psychological experience of sound that corresponds to the frequency of the sound waves; higher frequencies are perceived as higher pitches.

Milgram's Obedience Study

A series of social psychology experiments conducted by Stanley Milgram, demonstrating individuals' willingness to obey authority figures, even to the extent of causing harm to others.

Participants

Individuals taking part in a study or research, often used to collect data or test hypotheses.

Self-Esteem

is the perception that an individual has about their own worth and value, often influencing their confidence and behaviors.