Identify two strategies Delgado should use to earn a positive roll yield. Describe the specific steps needed to execute each strategy.
- Implement the carry trade. Buy (invest in) the high-yield currency and
sell (borrow) the low-yield currency. - Trade the forward rate bias. Buy (invest in) the forward discount currency
and sell (borrow) the forward premium currency.
Is there really any difference between these two strategies lmao?