Question: Consider two countries, A and B, whose currencies are A and B, respectively. The interest rate in A is greater than the interest rate' in

Consider two countries, A and B, whose currencies are A and B, respectively. The interest rate in A is greater than the interest rate' in B. Which of the following is true according to the expected movement relationship and interest rate parity, respectively?
a. A is expected to appreciate relative to B, and a trades with a forward discount.
b. A is expected to appreciate relative to B, and a trades with a forward premium.
c. A is expected to depreciate relative to B, and a trades with a forward discount.
d. A is expected to depreciate relative to B, and a trades with a forward premium.

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