Question : 37. Which of the following correct if you have contracted to : 1284468

 

 

37. Which of the following is correct if you have contracted to purchase 1,000 Swiss francs 3 months forward at a rate of SFr1.6/$? 
A. You pay approximately $625 today for the francs.
B. You pay $1,600 today for the francs.
C. You pay approximately $625 3 months from now for the francs.
D. You pay $1,600 3 months from now for the francs.

38. If the spot indirect exchange rate of Mexican pesos for U.S. dollars is 9.8/1 and the peso is trading at a forward premium of 3%, then you will receive: 
A. more than 9.8 pesos per dollar in the future.
B. less than 9.8 pesos per dollar in the future.
C. 9.83 pesos per dollar in the future.
D. 10.09 pesos per dollar in the future.

39. If the spot exchange rate between euros and dollars is €1.5/$ before the dollar depreciates by 10%, how many dollars will it now (after the depreciation has occurred) take to pay an invoice of €500? 
A. $366.67
B. $370.37
C. $750.00
D. $825.00

40. The theory that goods in a foreign country should be priced approximately equal after currency translation to goods in a host country is referred to as the law of: 
A. exchange rates.
B. large numbers.
C. spot rates.
D. one price.

41. If prices in the United States rise less rapidly than in Canada, which of the following would be expected according to purchasing power parity? 
A. The value of the Canadian dollar will decline, relative to the U.S. dollar.
B. The value of the U.S. dollar will decline, relative to the Canadian dollar.
C. Inflation will increase in Canada.
D. The price of gold will decline.

42. Which of the following would you expect to be nearly equal across countries? 
A. Nominal interest rates
B. Real interest rates
C. Inflation rates
D. Forward premium

43. How much wealthier would you be 1 year from now if you exchange $100,000 into Hong Kong dollars today at an indirect rate of HK$7.8/$, earn 7% on your Hong Kong investment, and exchange back at a rate of HK$8.0/$, as compared to investing in the United States at 4.0%? 
A. -$2,600
B. $325
C. $2,000
D. $5,744

44. If the difference between forward and spot exchange rates is positive, interest rate parity would predict that: 
A. the difference in interest rates between countries will be negative.
B. the difference in interest rates between countries will be positive.
C. there will be no difference in interest rates between countries.
D. the difference will be quickly eliminated.

45. What can be said about the spot exchange rate of dollars for pounds if nominal interest rates are higher in the United States than in the United Kingdom? 
A. It should exceed the forward rate of dollars for pounds.
B. It should be less than the forward rate of dollars for pounds.
C. It is expected to increase.
D. It is expected to remain constant.

46. U.S. investments with a 1-year maturity can be made for 6% and Swiss 1-year investments can be made for 3%. If the spot exchange rate is SFr1.6/$, which of the following 1-year forward exchange rates would convince you to invest in Switzerland? 
A. SFr1.55/$
B. SFr1.60/$
C. SFr1.65/$
D. SFr1.70/$

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more