Multiple Choice
A U.S. investor has borrowed pounds,converted them to dollars,and invested the dollars in the United States to take advantage of interest rate differentials. To cover the currency risk,the investor should
A) sell pounds forward.
B) buy dollars forward.
C) buy pounds forward.
D) sell pounds spot.
E) None of these choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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