If the current exchange value of the dollar is $1.25 per euro, then
A) European Investor #1 expects a dollar depreciation against the euro, but European Investors #2 and #3 expect a dollar appreciation.
B) European Investor #1 expects a dollar appreciation against the euro, but European #2 and #3 expect a dollar depreciation.
C) all three European investors expect that the dollar will depreciate against the euro.
D) all three European investors expect that the dollar will appreciate against the euro.

Question

Quizplus · Accepted Answer

Without specific statements from the European investors about their expectations, it's impossible to determine their views on the future exchange rate movement between the dollar and the euro. The correct answer cannot be determined from the information provided.

If the Current Exchange Value of the Dollar Is $1