$$\begin{array} { | l | l | }
\hline \text { Investor } & \begin{array} { l }
\text { Expected future value of a } \
\text { dollar (francs per doll ar) }
\end{array} \
\hline \text { Investor A } & 120 \
\hline \text { Investor B } & 100 \
\hline \text { Investor C } & 85 \
\hline
\end{array}$$
-Using the table above, if the current market value of the dollar is 90 francs,
A) all three investors expect the dollar to appreciate.
B) all three investors expect the dollar to depreciate.
C) investor C expects dollar depreciation, but A and B expect appreciation.
D) investor A expects dollar appreciation, but B and C expect depreciation.

Question

$$\begin{array} { | l | l | } 
\hline \text { Investor } & \begin{array} { l } 
\text { Expected future value of a } \
\text { dollar (francs per doll ar) }
\end{array} \
\hline \text { Investor A } & 120 \
\hline \text { Investor B } & 100 \
\hline \text { Investor C } & 85 \
\hline
\end{array}$$
-Using the table above, if the current market value of the dollar is 90 francs,
A) all three investors expect the dollar to appreciate.
B) all three investors expect the dollar to depreciate.
C) investor C expects dollar depreciation, but A and B expect appreciation.
D) investor A expects dollar appreciation, but B and C expect depreciation.

Quizplus · Accepted Answer

Investor C expects the dollar to depreciate because their expected future value (85 francs per dollar) is less than the current market value (90 francs per dollar). Investors A and B expect appreciation as their expected values (120 and 100 francs per dollar, respectively) are higher than the current market value.

-Using the Table Above, If the Current Market Value of