1)

A currency futures contract is marketed in __________ on the ____________.

Select one:

a. U.S. $, Chicago Board of Trade

b. U.S. $, New York Stock Exchange

c. more than fifteen foreign currencies, Chicago Board of Trade

d. U.S. $, New York Mercantile Exchange

2)

One of the greatest advantages of hedging with currency futures is _______.

Select one:

a. they have flexible contract sizes of foreign currencies.

b. they are the least expensive of any other hedge tool.

c. they are available every day of the year.

d. they are available in every foreign currency.

3)

Which one of the following features are NOT an advantage when hedging with currency futures?

Select one:

a. they have standard contract sizes.

b. they have less credit risk than forward contracts.

c. they use mark to market accounting.

d. they are less expensive than forward contracts