Explain why a foreign currency can be treated as an asset

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I. Explain why a foreign currency can be treated as an asset providing a known yield. Get the instant assignment help.

II. It is sometimes argued that a forward exchange rate is an unbiased predictor of future exchange rates. Under what circumstances is this so?

III. "If a company does not do better than its competitors but the stock market goes up, executives do very well from their stock options. This makes no sense.'' Discuss this viewpoint. Can you think of alternatives to the usual employee stock option plan that take the viewpoint into account.

Reference no: EM133927096

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