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Question
The risk-free rate in the United States is 4%, and the risk-free rate in Japan is 1.2%. If the spot rate of yen to dollars is 105, what is the likely yen-per-dollar forward rate?A. 101
B. 102
C. 105
D. 108
Answer
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Related questions
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Q:
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I. WEBS can be shorted.
II. WEBS trade continuously on the AMEX.
III. WEBS are passively managed.
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B. II and III only
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Q:
The major participants who directly purchase securities in the capital markets of other countries are predominantly ____________.
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In the PRS financial risk ratings, the United States rates poorly because of the U.S. ________.
I. Large budget deficit
II. Large trade deficit
III. Large amount of total debt
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B. I and II only
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Q:
The yen-per-dollar spot rate is 104. The yen-per-dollar forward rate is 107. If the U.S. risk-free rate is 2.4%, what is the likely yen risk-free rate?
A. 1.24%
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Q:
Passive investors with well-diversified international portfolios _________.
A. can safely ignore all political risk in emerging markets
B. can expect very large diversification gains from their international investing
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Q:
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D. Europe, American, Far East
Q:
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A. sell S&P 500 Index futures
B. sell Treasury-bond futures
C. buy Treasury-bond futures
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Q:
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B. a reversing trade
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Q:
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Q:
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Q:
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Q:
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Q:
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A.
a decrease in the exercise price
B.
a decrease in time to expiration of the put
C.
an increase in the volatility of the underlying stock
D.
Q:
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Q:
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Q:
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C. the open interest
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Q:
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A. daily limit
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C. maintenance margin
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Q:
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B. sellers of futures contracts only
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Q:
Initial margin is usually set in the region of ________ of the total value of a futures contract.
A. 5%-15%
B. 10%-20%
C. 15%-25%
D. 20%-30%