If the dollar is expected to depreciate against the British pound during the next 60 days, then
A) the current pound/dollar exchange rate should be higher than the 60-day forward pound/dollar exchange rate.
B) the current pound/dollar exchange rate should be lower than the 60-day forward pound/dollar exchange rate.
C) buying dollars today with pounds and selling them in 60 days for pounds will yield a profit.
D) the pound price of U.S. goods sold in Britain must be expected to rise.
Correct Answer:
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