If the spot rate of the euro increased substantially over a one-month period, the futures price on euros would likely ____ over that same period.
A) increase slightly
B) decrease substantially
C) increase substantially
D) stay the same

Question

​If the spot rate of the euro increased substantially over a one-month period, the futures price on euros would likely ____ over that same period.
A) ​increase slightly
B) ​decrease substantially
C) ​increase substantially
D) ​stay the same

Quizplus · Accepted Answer

Futures prices tend to follow spot prices, so if the spot rate of the euro has increased substantially, the futures price on euros would likely also increase substantially over that same period.

​If the Spot Rate of the Euro Increased Substantially Over

If the Spot Rate of the Euro Increased Substantially Over