Reference no: EM131050110

Question 1.Some commodities never enter into international trade. Examples include:

Question 2.Most exchange traded currency options:

Question 3.Swap transactions:

Question 4.Nondollar currency transactions:

Question 5.Forward parity states that:

Question 6.One implication of the random walk hypothesis is:

Question 7.The American dollar to Euro spot exchange rate is $1.50/€ and the 90-day forward premium is 10 percent. Find the 90-day forward price

Question 8.Suppose you observe the following exchange rates: €1 = $1.50; ´120 = $1.00. Calculate the euro-pound exchange rate.

Question 9.The efficient market hypothesis (EMH) states that:

Question 10.The world's largest foreign exchange trading center is:

Question 11.What paradigm is used to define the futures price?

Question 12.Consider the following spot and forward rate quotations for the Swiss franc:
Which of the following is true?

Question 13.Suppose that the one-year interest rate is 4.0 percent in the Italy, the spot exchange rate is $1.60/€, and the one-year forward exchange rate is $1.58/€. What must the one-year interest rate be in the United States?

Question 14.Relative to the spot price, the forward price will be:

Question 15.Open interest in currency futures contracts:

Question 16.If a foreign country experiences a hyperinflation:

Question 17.Yesterday, you entered into a futures contract to sell €62,500 at $1.50 per €. Your initial performance bond is $1,500 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted?

Question 18.The largest and most active financial market in the world is:

Question 19.The foreign exchange market closes: