Question 3 (1 point)Which of the following statements is not correct about Exchangetraded funds...

Which of the following statements is not correct about Exchange traded funds (ETFs)?

a)	ETFs limit diversification benefits

b)	ETFs are funds an investor can buy or sell on a stock exchange

c)	ETFs are open-ended

d)	ETFs represent shares of ownership

The spot and 180day forward rates for the euro are $1.3310 and $1.3402, respectively. The euro is said to be selling at a forward

a)	discount of 1.4%

b)	premium of 1.4%

c)	discount of 6.9%

d)	premium of 6.9%

Solutions

Expert Solution

1.
ETFs limit diversification benefits

2.
=(1.3402/1.3310-1)*360/180
=1.3824%

Euro is selling at a forward premium of 1.4%

jeff jeffy answered 2 years ago

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