Suppose the interest rate on 6-month treasury bills is 7 per
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States.If today's spot price of the pound is $2.00 while the 6-month forward price of the pound is $1.98,by investing in UK treasury bills rather than US treasury bills,and not covering exchange rate risk,US investos earn an extra return for the 6 percent of:A.0.5 percent B.1.5 percent C.3.0 percent D.it is not possible to determine without additional information
2、If the forward premium of the euro is positive,the exchange market's consensus appears to be that over the period of a forward contract,the spot rate of the euro will:A.Depreciate B.Appreciate C.Remain constant D.Fluctuate randomly