国际金融英文版试题chapter6.docVIP

INTERNATIONAL FINANCE Assignment Problems (6) Name: Student#: I. Choose the correct answer for the following questions (only correct answer) (3 credits for each question, total credits 3 x 20 = 60) 1. Which of the following is NOT true regarding forward contracts? A. The maturity of forward contracts is flexible. B. Forward contracts are traded both on organized exchanges and OTC market. C. Forward contracts are used to speculate the discrepancies of the exchange rates. D. The size of a forward contract is usually much larger than that of the futures or options. 2. Which of the following is NOT a contract specification for currency futures trading on an organized exchange? A. maturity date B. maintenance margin requirement C. size of the contract D. All of the above are specified 3. A futures contract is very similar to a forward contract, because __________. A. both are agreements between two parties to deliver relative currencies at a certain time for a certain price B. both are standardized contracts C. both can be used to eliminate the default risk D. both are required to physically deliver the underlying currency 4. If the amount in the margin account drops below the maintenance margin, the futures contract holder will __________. A. close out the contract B. be issued a margin call C. write a new contract D. notify the exchange 5. Which of the following is NOT a difference between a currency futures contract and a forward contract? A. The counterparty to the futures participant is unknown with the clearinghouse stepping into each transaction whereas the forward contract participants are in direct contact setting the forward specifications. B. A single sales commission covers both the purchase and sale of a futures contract whereas there is no specific sales commission with a forward contract because banks earn a profit through the bid-ask spread. C. The futures contract is marked to market daily whereas a forward contract is only due to be settled at maturity