A U.S. investor enters into a forward contract to buy 100,000 Swiss francs (CHF) for U. S. dollars (USD) at an exchange rate of 1.25 USD per CHF. Consider the following statements on the possible motivations for the investor's position in the forward. Statement I. The investor is hedging the exchange rate risk arising from an anticipated future sale of Swiss francs for U. S. dollars. Statement II. The investor believes that the Swiss franc will appreciate against the U. S. dollar in the future and wishes to make a speculative profit. Statement III. The investor is an arbitrager who considers that the Swiss franc forward price is higher than it should be based on the spot price and interest rates. Which of the following is correct?

a. Statement I is correct, Statements II and III are incorrect. b. Statement II is correct, Statements I and III are incorrect. c. Statement III is correct, Statements I and II are incorrect. d. Statements I, II and III are incorrect. e. Statements I, II and III are correct.