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Basic Question 2 of 3
The expected reward on a carry trade is:
B. favorable exchange rate movements.
C. inflation differential.
A. the gradual accrual of the interest rate differential that's unrelated to exchange rate volatility.
B. favorable exchange rate movements.
C. inflation differential.
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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz
Learning Outcome Statements
describe the carry trade and its relation to uncovered interest rate parity and calculate the profit from a carry trade;
CFA® 2025 Level II Curriculum, Volume 1, Module 8.