国际金融Chapter 5.pptVIP

Chapter 5 Answer: B €200,000 × $1.10 = $220,000 1. Graylon, Inc., based in Washington, 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 euro on September 1 is $1.15. Graylon will receive $_______ for the euros. A) 224,000 B) 220,000 C) 200,000 D) 230,000 Answer: B (F/S) – 1 = ($1.60/$1.63) – 1 = –1.8 percent. 2. 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 _______ percent. A) discount; 1.9 B) discount; 1.8 C) premium; 1.9 D) premium; 1.8 Answer: C 3. 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 year. 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 today’s forward rate. B) convert the dollars to rupees in the spot market today and convert dollars to rupees in one year 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 today’s 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. Answer: B 4. In the U.S., 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. Answer: D 5. 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 options B) futures contracts; call options C) forward contracts;