You are a manager of a hedge fund that has a trading strategy based on picking which currencies you believe will change in value in a significant way in a short period of time. If you believe that the value of the British pound will appreciate in the near future against the euro, you will

Question

You are a manager of a hedge fund that has a trading strategy based on picking which currencies you believe will change in value in a significant way in a short period of time. If you believe that the value of the British pound will appreciate in the near future against the euro, you will

Quizplus · Accepted Answer

If you believe the British pound will appreciate against the euro, you would buy British pounds because they will be worth more in the future. You might also sell euros if you hold them, to capitalize on their relative depreciation against the pound.

You Are a Manager of a Hedge Fund That Has a Trading