Question
1. Advantages of currency futures contracts relative to forward contracts include _ Select one: a. Higher liquidity b. Standardized contract specifications c. Freedom to sell
1. Advantages of currency futures contracts relative to forward contracts include _
Select one:
a. Higher liquidity b. Standardized contract specifications c. Freedom to sell the contract before maturity d. All of the abov
2. If the treasury bonds in country A consistently yield more returns compared to those in country B, we would see __ . (assuming treasury bonds are risk-free)
Select one:
a. Country A goes bankrupt b. The currency in country A appreciates against the currency in country B over time c. The currency in country A depreciates against the currency in country B over time d. The currency exchange rate is unaffected.
3. At the expiration of a futures contract, futures prices converge to __. Select one:
a. Option prices b. forward prices c. market prices d. spot prices
4. A foreign currency futures contract is a commitment to exchange certain amount of currencies in a specified exchange rate at a specified time in the future.
Select one: True False
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