Other things remaining the same, the higher the current exchange rate, the larger is the expected profit from buying dollars.

Question

Quizplus · Accepted Answer

The expected profit from buying dollars depends on the future exchange rate relative to the current rate, not just the level of the current exchange rate. If the future rate is higher than the current rate, then profit is expected, regardless of the current rate's level.

Other Things Remaining the Same, the Higher the Current Exchange