Speculators who think the euro is likely to decline over the next year can take all of the following actions EXCEPT

Question

Quizplus · Accepted Answer

Buying call options on euros is not a viable option for speculators who think the euro is likely to decline because call options give the holder the right to buy euros at a certain price. If the euro declines, the call option becomes worthless. Therefore, all of the other options listed (buying put options, selling euro futures contracts, and selling euro forward contracts) would be more appropriate for speculators who believe the euro is likely to decline.

Speculators Who Think the Euro Is Likely to Decline Over