questions 6-8

Accessibility Mode Print Immersive Reader 6) If IRP is violated, one can lock in guaranteed profit by A) selling currencies in different countries to lock in profit B) borrowing in one currency and lending in another, with exchange risk hedged via forward contract C) borrowing in high-interest rate country and lending in low-interest rate country to profit. D) none of the above 7) An indirect quotation is A) when the domestic currency is the quoted currency B) when neither currency is the base currency C) when both currencies are quoted currency D) when the domestic currency is the base currency 8) Which of the following is not needed in calculating the forward rate? A) the spot rate of the currency pair B) the domestic interest rate C) the cross rate D) the foreign interest rate GIVE FEEDBAC Ashmita Khasnabish (Ph.D.) MacBook Air