If Canadian speculators expect the euro to appreciate against the U.S. dollar, they would:

Question

Quizplus · Accepted Answer

If Canadian speculators expect the euro to appreciate against the U.S. dollar, they would directly purchase euros. This is because as the euro appreciates, its value against other currencies, including the Canadian dollar, also increases. By purchasing euros, the speculators are able to benefit from this appreciation in value. Option A and B are not relevant as they do not involve directly buying the currency that is expected to appreciate. Option D is overly complicated and involves unnecessary steps.

If Canadian Speculators Expect the Euro to Appreciate Against the U.S