题目内容

Arbitrage refers to the purchase of a currency in the monetary center where it is cheaper, for immediate resale in the monetary center where it is more expensive, in order to make a profit. ()

查看答案

搜索结果不匹配？点我反馈

更多问题

A forward transaction involves an agreement today to buy or sell a specified amount of a foreign currency at the forward rate. ()

If the forward rate is above the present spot rate, the foreign currency is said to be at a forward discount with respect to the domestic currency. ()

If the positive interest rate differential in favor of a foreign monetary center is 4 percent per year and the foreign currency is at a forward discount of 3 percent per year, roughly how much would an interest arbitrageur earn from the purchases of foreign three-month treasure bills if he or she covered the foreign exchange risk? ( )

A. 4%
B. 3%
C. 1%
D. 7%

The foreign exchange market is the market in which individuals, firms, and banks buy and sell foreign currencies or foreign exchange. ()