题目内容

If the covered interest differential is zero, then:

A. covered international investments will be profitable once we add in the interest earned on the foreign bonds.
B. covered interest rate parity has not yet been reached.
C. the overall covered return on a foreign-currency investment equals the return on a comparable domestic-currency investment.
D. a currency is at a forward premium by as much as its interest rate is higher than the interest rate in the other country.

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When the current $/€ forward rate is below the current spot rate, the dollar is at a(n) _____.

A. forward premium
B. forward discount
C. covered parity
D. uncovered parity

Suppose the interest rate in the U.K. is 5% for 90 days, the current spot rate is $2.00/£, and the 90-day forward rate is $1.96/£. If the covered interest rate differential is about zero, then the interest rate in the U.S. for 90 days is:

A. 6 percent.
B. 4 percent.
C. 3 percent.
D. 2 percent.

Hedging a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.

A. 对
B. 错

Speculating in a position exposed to exchange-rate risk is the act of reducing or eliminating a net asset or net liability position in the foreign currency.

A. 对
B. 错