NO.PZ2018113001000092
问题如下：
A fund manager observes that interest rates
in the US dollar are much lower than in India and remain wide spread for a long
time.
Based on this observation, describe what strategy
should he take.
选项：
解释：
Answer:
In this case, Interest rates in India are
higher than in the United States, so the dollar is a low rate currency or
forward premium currency, the Rupee is a high rate currency or forward discount
currency.
The manager should borrow from the low-rate currency and invest in the high-rate currency to earn the difference between the two countries; or invest in the forward discount currency and borrow the forward premium currency.
中文解析：
美元的利率低于印度卢比的利率，因此可以执行carry trade策略，借低利率货币投资于高利率货币，其中低利率货币又叫做forward premium currency，高利率货币又叫做forward discount currency。
fund manager should take carry trade between US dollar and India.
financing form a lower interest rates in the US dollar and investing to a higher interest rates in India.
because wide spread remains a long time. if the market is stable, the carry trade is profitable.
