If an investor starts with dollars and wants to end up with dollars in the future, which of the following is NOT an investment choice that can be made?
A) Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy the foreign currency
B) Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy dollars
C) Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and then buy dollars at the future spot rate
D) Buy a dollar-denominated financial asset
Correct Answer:
Verified
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