1. If you believe the present spot rate of exchange of $0.5376/DM will fall (i.e. the $/DM will decrease or the DM will depreciate), which of the following would likely yield you the largest speculative gain?

2.If the Indian subsidiary of a U.S. firm has net exposed assets of Rp9,000,000 ($200,000) and the Indian rupee drops in value from Rp45.00/$ to Rp50.00/$ (10% depreciation) the U.S. firms has a translation

3. If a U.S. multinational firm borrows French francs for one year at 8% interest, and during the year the franc appreciates by 5% relative to the dollar, the approximate before-tax cost of this debt is