-Using the table above, if the current market value of the dollar is 110 francs
A) investor A expects dollar appreciation, but B and C expect depreciation.
B) investor C expects dollar depreciation, but A and B expect appreciation.
C) all three investors expect the dollar to appreciate.
D) all three investors expect the dollar to depreciate.

Question

-Using the table above, if the current market value of the dollar is 110 francs
A) investor A expects dollar appreciation, but B and C expect depreciation. 
B) investor C expects dollar depreciation, but A and B expect appreciation. 
C) all three investors expect the dollar to appreciate. 
D) all three investors expect the dollar to depreciate.

Quizplus · Accepted Answer

Investor A expects dollar appreciation because the current market value of the dollar is higher than the expected future value of 100 francs. Investors B and C expect dollar depreciation because the current market value of the dollar is lower than the expected future value of 120 francs and 115 francs, respectively.

-Using the Table Above, If the Current Market Value of the Dollar