GIVEN THE DATA PRESENTED BY CHRIS BROWN, WHICH OF THE FOLLOWING...

22. - CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A
CFA 2018 EXAM LEVEL 3 DA4387 LEVEL III CFA MOCK EXAM 2018 AFTERNOON A

22. Given the data presented by Chris Brown, which of the following statements is most likely to be

accurate in order to carry out a successful carry trade?

A. The manager should go long the forward contract. The trade will be profitable as long as the

exchange rate in three months’ time is above 1.5035.

B. The manager should go long the forward contract. The trade will be profitable as long as the

C. The manager should go short the forward contract. The trade will be profitable as long as the

exchange rate in three months’ time is below 1.5035.