Management of Transaction ExposureMultiple Choice Questions必看课件资料.doc

Lecture 12 - Management of Transaction Exposure 8- PAGE 1 ? 2012 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part. Lecture 13(Chapter 8) Management of Transaction Exposure ? Multiple Choice Questions? 1.?Transaction exposure is defined as?A.?the sensitivity of realized domestic currency values of the firms contractual cash flows denominated in foreign currencies to unexpected exchange rate changes.B.?the extent to which the value of the firm would be affected by unanticipated changes in exchange rate.C.?the potential that the firms consolidated financial statement can be affected by changes in exchange rates.D.?ex post and ex ante currency exposures. ? 2.?The most direct and popular way of hedging transaction exposure is by?A.?exchange-traded futures options.B.?currency forward contracts.C.?foreign currency warrants.D.?borrowing and lending in the domestic and foreign money markets. ? 3.?If you have a long position in a foreign currency, you can hedge with:?A.?A short position in an exchange-traded futures optionB.?A short position in a currency forward contractC.?A short position in foreign currency warrantsD.?Borrowing (not lending) in the domestic and foreign money markets ? 4.?If you owe a foreign currency denominated debt, you can hedge with?A.?a long position in a currency forward contract.B.?a long position in an exchange-traded futures option.C.?buying the foreign currency today and investing it in the foreign county.D.?both a) and c) ? 5.?If you own a foreign currency denominated bond, you can hedge with?A.?a long position in a currency forward contract.B.?a long position in an exchange-traded futures option.C.?buying the foreign currency today and investing it in the foreign county.D.?a swap contract where pay the cash