1)

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.

2)

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

3)

Which one of the following is NOT a disadvantage when using currency futures?

Select one:

a.low initial payment to purchase the contract

b.limited number of currencies available in futures

c.fixed contract sizes by currency

d.limited number of expiration dates during the year