AssumemthemCanadianmdollarmismequalmtom$.95mandmthemPeruvianmSolmismequalmtom$.45.mThemvalu
emofmthemCanadianmdollarsminmPeruvianmSolmism(pleasemroundmupmtom2mdecimalmnumbers)
Answer:m2.11
AmJapanesemyenmismworthm$.0060,mandmamFijianmdollarm(F$)mismworthm$.4500.mWhatmismthemvaluem
ofmthemyenminmFijianmdollarsm(i.e.,mhowmmanymFijianmdollarsmdomyoumneedmtombuymamyen)?m(pleasem
roundmupmtom3mdecimalmnumbers)
Answer:m0.013
Whatmismthemmainmobjectivemofmtheminternationalmcreditmmarket?
a.mmedium-termmlending.
b.mplacingmnewlymissuedmstockminmforeignmmarkets
c.mProvidingmlong-termmlending.
d.mProvidingmshort-termmlendingm(lessmthanmonemyear).
Amcallmoptionmwithmamstrikempricemofm$35mcanmbemboughtmform$2.mWhatmwillmbemyourmnetmprofitminmU
SDmifmyoumsellmthemcallmandmthemstockmpricemism$22mwhenmthemcallmexpires?m(writemnumbermonly)
Answer:m15
Whichmofmthemfollowingmismnotmthemmainmobjectivemofmtheminternationalmmoneymmarket?
a.mplacingmnewlymissuedmstockminmforeignmmarkets.
b.mAllmofmabove
c.mmedium-termmlending.
d.mplacingmbondsmwithminvestors.
Them_______mthemexistingmmarketmpricemofmthemunderlyingmfinancialminstrumentmrelativemt
omthemstrikemprice,mthem______mthemputmoptionmpremium.
a.mlower;mlower
b.mhigher;mlower
c.mhigher;mhigher
d.mnonemofmthemabove
AmJapanesemyenmismworthm$.0060,mandmamFijianmdollarm(F$)mismworthm$.4500.mWhatmismthemvaluem
ofmthemyenminmFijianmdollarsm(i.e.,mhowmmanymyensmdomyoumneedmtombuymamFijianmdollar)?m(pleasem
roundmupmtom0mdecimalmnumbers)
Answer:m75
Youmboughtmamputmoptionmonmeurosmwithmamstrikempricemofm$1.70/euromThemoptionmpremiummism0.0
2mUSDmpermunit.mWhichmspotmpricemmakemyoumbreak-
evenmifmyoumchoosemtomexercisemthemoptionmbeforemmaturity?m(writemnumbermonly,mroundmupmtom2
mdecimalmnumbers)
Answer:m
Amforeignmcurrencym________moptionmgivesmthemholdermthemrightmtom________mamforeignmc
urrencymwhereasmamforeignmcurrencym________moptionmgivesmthemholdermthemrightmtom___
_____manmoption.
a.mput,mhold,mcall,mrelease
b.mnonemofmthemabove
c.mcall,msell,mput,mbuy
d.mcall,mbuy,mput,msell
Youmboughtmamputmoptionmonmeurosmwithmamstrikempricemofm$1.70/£.mThemoptionmpremiummism0.02m
USDmpermunit.mWhichmspotmpricemmakemyoumbreak-
,evenmifmyoumchoosemtomexercisemthemoptionmbeforemmaturity?m(writemnumbermonly,mroundmupmtom2
mdecimalmnumbers
Assumemthatm$1mismequalmtom.85mBritishmPoundmandm98myen.mWhatmismthemvaluemofmBritishm
PoundminmYen?m(roundmupmtom2mdecimalmnumbers)
a.m114.94
b.m111.49
c.m.0087
d.m121.23
Whomhasmanmobligationmtomsellmanmassetmatmam“lock-in”mprice?
a.mAmbuyermofmamputmoption
b.mAmsellermofmamcallmoption
c.mAmsellermofmamputmoption
d.mAmbuyermofmamcallmoption
Amputmoptionmwithmamstrikempricemofm$35mcanmbemboughtmform$2.mWhatmwillmbemyourmnetmprofitminmU
SDmifmyoumbuymthemputmandmthemstockmpricemism$22mwhenmthemputmexpires?m(writemnumbermonly)
Answer:m15
Whichmofmthemfollowingmstatementmismincorrectmregardingmtomspotmmarketmliquidity?
a.mThemspotmmarketsmformheavilymtradedmcurrenciesmsuchmasmthemJapanesemyenmaremverymliquid.
b.mIfmamcurrencymismilliquid,manmMNCmismtypicallymablemtomquicklympurchasemthatmcurrencymatmamrea
sonablemexchangemrate.
c.mAmcurrency'smliquiditymaffectsmthemeasemwithmwhichmanmMNCmcanmobtainmormsellmthatmcurrency.
d.mThemmoremwillingmbuyersmandmsellersmtheremare,mthemmoremliquidmammarketmis.
Whatmismthemmainmobjectivemofmtheminternationalmmoneymmarket?
a.mplacingmbondsmwithminvestors.
b.mlong-termmlending.
c.mshort-termmlendingm(onemyearmormless).
d.mmedium-termmlending.
Clearmmymchoice
Questionm6
Notmyetmanswered
Flagmquestion
Questionmtext
Markedmoutmofm1.00
, Ifmwemhavem2mputmoptionsmthatmhavemthemsamemmaturitymandmpremium,mth
emmoremvaluablemonemwillmhavema
a.mlargermSt.
b.mlargermR$.
c.mlowermstrikemprice.
d.mhighermstrikemprice.
Questionm7
Notmyetmanswered
Markedmoutmofm1.00
Flagmquestion
Questionmtext
YoumobservemamquotationmofmthemSwissmFrancmofm$0.007.mYoumare,mhowe
ver,minterestedminmthemnumbermofmSwissmFrancmpermdollar.mThus,myoumcalc
ulatemthem____mquotationmofm____mSwissmFrancm/$.
a.mindirect;m150
b.mindirect;m142.86
c.mdirect;m124.86
d.mdirect;m150
, Clearmmymchoice
Questionm8
Notmyetmanswered
Markedmoutmofm1.00
Flagmquestion
Questionmtext
WhichmofmthemfollowingmismNOTmtruemformthemwritermofmamcallmoption?
a.mThemmaximummlossmismunlimited.
b.mThemmaximummgainmismunlimited.
c.mThemgainmormlossmismequalmtombutmofmthemoppositemsignmofmthembuyermofm
amcallmoption.
d.mAllmofmthemabovemaremtrue.
Clearmmymchoice
Questionm9
Notmyetmanswered
Markedmoutmofm1.00
emofmthemCanadianmdollarsminmPeruvianmSolmism(pleasemroundmupmtom2mdecimalmnumbers)
Answer:m2.11
AmJapanesemyenmismworthm$.0060,mandmamFijianmdollarm(F$)mismworthm$.4500.mWhatmismthemvaluem
ofmthemyenminmFijianmdollarsm(i.e.,mhowmmanymFijianmdollarsmdomyoumneedmtombuymamyen)?m(pleasem
roundmupmtom3mdecimalmnumbers)
Answer:m0.013
Whatmismthemmainmobjectivemofmtheminternationalmcreditmmarket?
a.mmedium-termmlending.
b.mplacingmnewlymissuedmstockminmforeignmmarkets
c.mProvidingmlong-termmlending.
d.mProvidingmshort-termmlendingm(lessmthanmonemyear).
Amcallmoptionmwithmamstrikempricemofm$35mcanmbemboughtmform$2.mWhatmwillmbemyourmnetmprofitminmU
SDmifmyoumsellmthemcallmandmthemstockmpricemism$22mwhenmthemcallmexpires?m(writemnumbermonly)
Answer:m15
Whichmofmthemfollowingmismnotmthemmainmobjectivemofmtheminternationalmmoneymmarket?
a.mplacingmnewlymissuedmstockminmforeignmmarkets.
b.mAllmofmabove
c.mmedium-termmlending.
d.mplacingmbondsmwithminvestors.
Them_______mthemexistingmmarketmpricemofmthemunderlyingmfinancialminstrumentmrelativemt
omthemstrikemprice,mthem______mthemputmoptionmpremium.
a.mlower;mlower
b.mhigher;mlower
c.mhigher;mhigher
d.mnonemofmthemabove
AmJapanesemyenmismworthm$.0060,mandmamFijianmdollarm(F$)mismworthm$.4500.mWhatmismthemvaluem
ofmthemyenminmFijianmdollarsm(i.e.,mhowmmanymyensmdomyoumneedmtombuymamFijianmdollar)?m(pleasem
roundmupmtom0mdecimalmnumbers)
Answer:m75
Youmboughtmamputmoptionmonmeurosmwithmamstrikempricemofm$1.70/euromThemoptionmpremiummism0.0
2mUSDmpermunit.mWhichmspotmpricemmakemyoumbreak-
evenmifmyoumchoosemtomexercisemthemoptionmbeforemmaturity?m(writemnumbermonly,mroundmupmtom2
mdecimalmnumbers)
Answer:m
Amforeignmcurrencym________moptionmgivesmthemholdermthemrightmtom________mamforeignmc
urrencymwhereasmamforeignmcurrencym________moptionmgivesmthemholdermthemrightmtom___
_____manmoption.
a.mput,mhold,mcall,mrelease
b.mnonemofmthemabove
c.mcall,msell,mput,mbuy
d.mcall,mbuy,mput,msell
Youmboughtmamputmoptionmonmeurosmwithmamstrikempricemofm$1.70/£.mThemoptionmpremiummism0.02m
USDmpermunit.mWhichmspotmpricemmakemyoumbreak-
,evenmifmyoumchoosemtomexercisemthemoptionmbeforemmaturity?m(writemnumbermonly,mroundmupmtom2
mdecimalmnumbers
Assumemthatm$1mismequalmtom.85mBritishmPoundmandm98myen.mWhatmismthemvaluemofmBritishm
PoundminmYen?m(roundmupmtom2mdecimalmnumbers)
a.m114.94
b.m111.49
c.m.0087
d.m121.23
Whomhasmanmobligationmtomsellmanmassetmatmam“lock-in”mprice?
a.mAmbuyermofmamputmoption
b.mAmsellermofmamcallmoption
c.mAmsellermofmamputmoption
d.mAmbuyermofmamcallmoption
Amputmoptionmwithmamstrikempricemofm$35mcanmbemboughtmform$2.mWhatmwillmbemyourmnetmprofitminmU
SDmifmyoumbuymthemputmandmthemstockmpricemism$22mwhenmthemputmexpires?m(writemnumbermonly)
Answer:m15
Whichmofmthemfollowingmstatementmismincorrectmregardingmtomspotmmarketmliquidity?
a.mThemspotmmarketsmformheavilymtradedmcurrenciesmsuchmasmthemJapanesemyenmaremverymliquid.
b.mIfmamcurrencymismilliquid,manmMNCmismtypicallymablemtomquicklympurchasemthatmcurrencymatmamrea
sonablemexchangemrate.
c.mAmcurrency'smliquiditymaffectsmthemeasemwithmwhichmanmMNCmcanmobtainmormsellmthatmcurrency.
d.mThemmoremwillingmbuyersmandmsellersmtheremare,mthemmoremliquidmammarketmis.
Whatmismthemmainmobjectivemofmtheminternationalmmoneymmarket?
a.mplacingmbondsmwithminvestors.
b.mlong-termmlending.
c.mshort-termmlendingm(onemyearmormless).
d.mmedium-termmlending.
Clearmmymchoice
Questionm6
Notmyetmanswered
Flagmquestion
Questionmtext
Markedmoutmofm1.00
, Ifmwemhavem2mputmoptionsmthatmhavemthemsamemmaturitymandmpremium,mth
emmoremvaluablemonemwillmhavema
a.mlargermSt.
b.mlargermR$.
c.mlowermstrikemprice.
d.mhighermstrikemprice.
Questionm7
Notmyetmanswered
Markedmoutmofm1.00
Flagmquestion
Questionmtext
YoumobservemamquotationmofmthemSwissmFrancmofm$0.007.mYoumare,mhowe
ver,minterestedminmthemnumbermofmSwissmFrancmpermdollar.mThus,myoumcalc
ulatemthem____mquotationmofm____mSwissmFrancm/$.
a.mindirect;m150
b.mindirect;m142.86
c.mdirect;m124.86
d.mdirect;m150
, Clearmmymchoice
Questionm8
Notmyetmanswered
Markedmoutmofm1.00
Flagmquestion
Questionmtext
WhichmofmthemfollowingmismNOTmtruemformthemwritermofmamcallmoption?
a.mThemmaximummlossmismunlimited.
b.mThemmaximummgainmismunlimited.
c.mThemgainmormlossmismequalmtombutmofmthemoppositemsignmofmthembuyermofm
amcallmoption.
d.mAllmofmthemabovemaremtrue.
Clearmmymchoice
Questionm9
Notmyetmanswered
Markedmoutmofm1.00
