The risk of an investment in a Eurodollar deposit is partially due to
A. the fact that the center of the Eurodollar market is in London.
B. the fact that the majority of these deposits are not in the form of U.S. dollars.
C. the presence of some foreign exchange risk.
D. the fact that these instruments only pay interest at maturity.
Answer:C
The risk of an investment in a Eurodollar deposit is partially due to
A. the fact that the center of the Eurodollar market is in London. B. the fact that the majority of these deposits are not in the form of U.S. dollars. C. the presence of some foreign exchange risk. D. the fact that these instruments only pay interest at maturity.