国际金融IFinanceTestBank5之欧阳历创编.docx

1、国际金融IFinanceTestBank5之欧阳历创编Chapter 5Currency Derivatives时间：2021.02.09创作人：欧阳历1.Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near fut

2、ure. Which of the following is not an appropriate hedging technique under these circumstances?a.purchase Canadian dollars forward.b.purchase Canadian dollar futures contracts.c.purchase Canadian dollar put options.d.purchase Canadian dollar call options.ANS:CPTS:12.Graylon, Inc., based in Washington

3、, exports products to a German firm and will receive payment of 200,000 in three months. On June 1, the spot rate of the euro was $1.12, and the 3-month forward rate was $1.10. On June 1, Graylon negotiated a forward contract with a bank to sell 200,000 forward in three months. The spot rate of the

4、euro on September 1 is $1.15. Graylon will receive $_ for the euros.a.224,000b.220,000c.200,000d.230,000ANS:BSOLUTION:200,000 $1.10 = $220,000PTS:13.The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. The forward _ is _ percen

5、t.a.discount; 1.9b.discount; 1.8c.premium; 1.9d.premium; 1.8ANS:BSOLUTION:(F/S) 1 = ($1.60/$1.63) 1 = 1.8 percent.PTS:14.The 90-day forward rate for the euro is $1.07, while the current spot rate of the euro is $1.05. What is the annualized forward premium or discount of the euro?a.1.9 percent disco

6、unt.b.1.9 percent premium.c.7.6 percent premium.d.7.6 percent discount.ANS:CSOLUTION:(F/S) 1 360/90 = 7.6 percent.PTS:15.Thornton, Inc. needs to invest five million Nepalese rupees in its Nepalese subsidiary to support local operations. Thornton would like its subsidiary to repay the rupees in one y

7、ear. Thornton would like to engage in a swap transaction. Thus, Thornton would:a.convert the rupees to dollars in the spot market today and convert rupees to dollars in one year at todays forward rate.b.convert the dollars to rupees in the spot market today and convert dollars to rupees in one year

8、at the prevailing spot rate.c.convert the dollars to rupees in the spot market today and convert rupees to dollars in one year at todays forward rate.d.convert the dollars to rupees in the spot market today and convert rupees to dollars in one year at the prevailing spot rate.ANS:CPTS:16.In the U.S.

9、, the typical currency futures contract is based on a currency value in terms of:a.euros.b.U.S. dollars.c.British pounds.d.Canadian dollars.ANS:BPTS:17.Currency futures contracts sold on an exchange:a.contain a commitment to the owner, and are standardized.b.contain a commitment to the owner, and ca

10、n be tailored to the desire of the owner.c.contain a right but not a commitment to the owner, and can be tailored to the desire of the owner.d.contain a right but not a commitment to the owner, and are standardized.ANS:APTS:18.Currency options sold through an options exchange:a.contain a commitment

11、to the owner, and are standardized.b.contain a commitment to the owner, and can be tailored to the desire of the owner.c.contain a right but not a commitment to the owner, and can be tailored to the desire of the owner.d.contain a right but not a commitment to the owner, and are standardized.ANS:DPT

12、S:19.Currency options are commonly traded through the _ system.a.robotb.Euroc.GLOBEXd.ScopeANS:CPTS:110.Forward contracts:a.contain a commitment to the owner, and are standardized.b.contain a commitment to the owner, and can be tailored to the desire of the owner.c.contain a right but not a commitme

13、nt to the owner, and can be tailored to the desire of the owner.d.contain a right but not a commitment to the owner, and are standardized.ANS:BPTS:111.Which of the following is the most likely strategy for a U.S. firm that will be receiving Swiss francs in the future and desires to avoid exchange ra

14、te risk (assume the firm has no offsetting position in francs)?a.purchase a call option on francs.b.sell a futures contract on francs.c.obtain a forward contract to purchase francs forward.d.all of the above are appropriate strategies for the scenario described.ANS:BPTS:112.Which of the following is

15、 the most unlikely strategy for a U.S. firm that will be purchasing Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs)?a.purchase a call option on francs.b.obtain a forward contract to purchase francs forward.c.sell a futures con

16、tract on francs.d.all of the above are appropriate strategies for the scenario described.ANS:CPTS:113.If your firm expects the euro to substantially depreciate, it could speculate by _ euro call options or _ euros forward in the forward exchange market.a.selling; sellingb.selling; purchasingc.purcha

17、sing; purchasingd.purchasing; sellingANS:APTS:114.When you own _, there is no obligation on your part; however, when you own _, there is an obligation on your part.a.call options; put optionsb.futures contracts; call optionsc.forward contracts; futures contractsd.put options; forward contractsANS:DP

18、TS:115.The greater the variability of a currency, the _ will be the premium of a call option on this currency, and the _ will be the premium of a put option on this currency, other things equal.a.greater; lowerb.greater; greaterc.lower; greaterd.lower; lowerANS:BPTS:116.When currency options are not

19、 standardized and traded over-the-counter, there is _ liquidity and a _ bid/ask spread.a.less; narrowerb.more; narrowerc.more; widerd.less; widerANS:DPTS:117.The shorter the time to the expiration date for a currency, the _ will be the premium of a call option, and the _ will be the premium of a put

20、 option, other things equal.a.greater; greaterb.greater; lowerc.lower; lowerd.lower; greaterANS:CPTS:118.Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound option represents 31,250 units. Assume that at the time of the purchase

21、, the spot rate of the pound is $1.51 and continually rises to $1.62 by the expiration date. The highest net profit possible for the speculator based on the information above is:a.$1,562.50.b.$1,562.50.c.$1,250.00.d.$625.00.ANS:BSOLUTION:The premium of the option is $.05 (31,250 units) = $1,562.50.

22、Since the option will not be exercised, the net profit is $1,562.50.PTS:119.Which of the following is true?a.The futures market is primarily used by speculators while the forward market is primarily used for hedging.b.The futures market is primarily used for hedging while the forward market is prima

23、rily used for speculating.c.The futures market and the forward market are primarily used for speculating.d.The futures market and the forward market are primarily used for hedging.ANS:APTS:120.Which of the following is true?a.Most forward contracts between firms and banks are for speculative purpose

24、s.b.Most future contracts represent a conservative approach by firms to hedge foreign trade.c.The forward contracts offered by banks have maturities for only four possible dates in the future.d.none of the aboveANS:DPTS:121.If you expect the euro to depreciate, it would be appropriate to _ for specu

25、lative purposes.a.buy a euro call and buy a euro putb.buy a euro call and sell a euro putc.sell a euro call and sell a euro putd.sell a euro call and buy a euro putANS:DPTS:122.If you expect the British pound to appreciate, you could speculate by _ pound call options or _ pound put options.时间：2021.02.09创作人：欧阳历