If the spot rate of the euro increased substantially over a one-month period, the futures price on euros would likely ____ over that same period.
A) increase slightly
B) decrease substantially
C) increase substantially
D) stay the same

Question

Quizplus · Accepted Answer

The futures price on euros would likely increase substantially because futures prices tend to follow the spot rate closely, reflecting expectations of future spot rates.

If the Spot Rate of the Euro Increased Substantially Over