题目内容

Suppose the interest rate on 6-month treasury bills is 5 percent per year in the United Kingdom and 3 percent per year in the United States. Also, today’s spot exchange price of the pound is $2.00 while the 6-month forward exchange price of the pound is $ 2,02. If the price of the 6-month forward pound were to _____, U.S. investors would see no return difference between covered U.K. investment and domestic U.S. investment.

A. rise to $2.03
B. rise to $2.04
C. fall to $1.99
D. fall to $1.98

查看答案

搜索结果不匹配？点我反馈

更多问题

_____ parity is the condition where the expected uncovered differential equals zero.

A. Covered interest
B. Uncovered interest
Covered arbitrage
D. Uncovered arbitrage

查看答案

Consider covered investments between the United States and Japan. If Japanese interest rates decrease, interest arbitrage operations will most likely result in a(n):

A. increase in the spot exchange price of the yen.
B. increase in the forward exchange price of the dollar.
C. sale of dollars in the forward market.
D. purchase of yen in the spot market.

查看答案

Consider the interaction between U.S. dollars and U.K. pounds. When the forward premium on the dollar is zero, it means:

A. the current spot price of dollars equals the future spot price of dollars.
B. the future spot price of dollars will be equal to the current forward price of dollars.
C. the current forward price of dollars equals the current spot price of dollars.
D. the spot exchange rate value of the pound is moving toward $1 per pound.

查看答案

Suppose the interest rate on one-year U.S. T-bills is 4% and interest rate on one-year British T-bills is 6.5%. If the dollar is at a one-year forward premium against the British pound of 3%, the covered interest differential is:

A. the same as the uncovered interest differential.
B. equally favoring investments in both the nations.
C. in favor of investments in the United Kingdom.
D. in favor of investments in the United States.

查看答案

A. rise to $2.03 B. rise to $2.04 C. fall to $1.99 D. fall to $1.98

_____ parity is the condition where the expected uncovered differential equals zero.

Consider covered investments between the United States and Japan. If Japanese interest rates decrease, interest arbitrage operations will most likely result in a(n):

Consider the interaction between U.S. dollars and U.K. pounds. When the forward premium on the dollar is zero, it means:

Suppose the interest rate on one-year U.S. T-bills is 4% and interest rate on one-year British T-bills is 6.5%. If the dollar is at a one-year forward premium against the British pound of 3%, the covered interest differential is:

A. rise to $2.03
B. rise to $2.04
C. fall to $1.99
D. fall to $1.98