第四章测试1.
For an investor who starts with dollars and wants to end up with dollars in the future, which of the following choices is an example that includes speculating?
A:Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to sell the foreign currency B:Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy dollars C:Buy a dollar-denominated financial asset D:Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and then buy dollars at the future spot rate
答案:D
2.
Suppose the interest rate on 6-month treasury bills is 7 percent per year in the United Kingdom and 4 percent per year in the United States. Also, today’s spot exchange price of the pound is $2.00 while the 6-month forward exchange price of the pound is $1.98. By investing in U.K. treasury bills rather than U.S. treasury bills, and covering exchange-rate risk, U.S. investors earn an approximate extra return for 6 months of:
A:1.5 percent. B:0.5 percent. C:4.0 percent. D:3.0 percent. 3.
The change in the future cash flows which have not been contracted for as a result of the random changes in exchange rate is known as ( ).
A:translation exposure B:transaction exposure C:operating exposure D:tax exposure 4.
Operating exposure is more likely known as ( ) exposure.
A:accounting B:liability C:competitive D:asset 5.
A swap bank provides an AA-rated company X and a BB-rated company Y with a five-year swap quotation of 2.5%-3% against LIBOR. The means:
A:The swap bank will pay company Y with 2.5% against receiving LIBOR from it, and receive 3% from company X against paying LIBOR to it. B:The swap bank will pay company X with 3% against receiving LIBOR from it, and receive 2.5% from company Y against paying LIBOR to it. C:none of the above D:The swap bank will pay company X with 2.5% against receiving LIBOR from it, and receive 3% from company Y against paying LIBOR to it. 6.
As for the seller of call option, if the future spot rate is higher than the strike price, the option will be known as ( ) option.
A:out-of-the -money B:in-the-money C:at-the-money D:In-the-market 7.
If the expected future spot rate is lower than the breakeven exchange rate, ( ) will be more desirable for multinational corporations to hedge against the transaction exposure arising from holding foreign-currency denominated accounts payable.
A:forward purchase B:put option C:call option D:forward sale 8.
Translation of the financial statements prepared by the foreign subsidiaries from their respective local currencies into the home currency of the parent company is usually done by two methods, including ( ) .
A:historical exchange rate method and current exchange rate method B:Current rate method and temporal method C:Current spot rate method and future spot rate method D:Historical exchange rate method and future spot rate method 9.
The profits and losses on a futures contract accrue to you daily, as the contract is “marked to market” daily.（ ）
A:对 B:错 10.
If Canada has a current 90 day forward exchange rate value for its currency that is above the current spot exchange rate value of its currency, then the Canadian 90-day interest rate is relatively high.（ ）
A:对 B:错
