Question: Identify the true statement about currency forward contracts. a . A currency forward contract establishes the price of gold. b . A currency forward rate

Identify the true statement about currency forward contracts.
a. A currency forward contract establishes the price of gold.
b. A currency forward rate should increase when the effective
interest rate of the foreign country decreases based on the
covered interest parity theory.
c. A currency forward rate should increase when the effective
interest rate of the home country decreases based on the covered
interest parity.
d. The swap rate of a forward contract is always positive.
e. None of the above.

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