Question: Question 2 4.35 pts A U.S. bank borrowed dollars, converted them to euros, and invested in euro-denominated CDs to take advantage of interest rate differentials.

Question 2 4.35 pts A U.S. bank borrowed dollars, converted them

Question 2 4.35 pts A U.S. bank borrowed dollars, converted them to euros, and invested in euro-denominated CDs to take advantage of interest rate differentials. To cover the currency risk the investor should sell dollars forward. sell euros forward. buy euros forward. sell euros spot. None of these choices are correct

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