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​When the Futures Price Is Equal to the Spot Rate

question 25

Multiple Choice

​When the futures price is equal to the spot rate of a given currency, and the foreign country exhibits a higher interest rate than the U.S. interest rate, astute investors may attempt to simultaneously ____ the foreign currency, invest it in the foreign country, and ____ futures in the foreign currency.


Definitions:

Anterior Side

The front or forward-facing part of the body or any anatomical structure.

Posterior Portion

The rear part of something, often referring to the back side of the body or an organ.

Vertebral Foramen

The vertebral foramen is the central canal within each vertebra of the spine through which the spinal cord passes.

Laminae

Thin layers or plates of tissue or material, forming part of the structure of plants or animals.

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