Depending on the interest rates of the two currencies involved, the forward foreign exchange rate:

Question

Options

• ACan only be higher or equal to the current spot rate
• BCan only be lower or equal to the current spot rate
• CCan never be equal to the current spot rate
• DCan either be higher, lower or equal to the current spot rate

• A
  76% (25)
• B
  6% (2)
• C
  15% (5)
• D
  3% (1)

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