What does the “carry trade” term mean? A) Borrow in the domestic curr
What does the “carry trade” term mean?
A) Borrow in the domestic currency to earn only the higher yield of the dollar implied by the regression.
B) Borrow in the foreign currency to earn only the expected capital appreciation of the dollar implied by the regression.
C) Borrow in the domestic currency to earn both the higher yield and the expected capital appreciation of the dollar implied by the regression.
D) Borrow in the foreign currency to earn both the higher yield and the expected capital appreciation of the dollar implied by the regression.
ANSWER
Answer: D
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