1 pts Question 8 transaction in the foreign exchange market requires delivery of foreign exchange at some future A date spot forward late none of the above 1 pts Question 9 The EURUSD exhcange rate is $1.2 while the GBPUSD echange rate is $1.65. Therefore, the GBPEUR rate must be Euros (meaning, 1 GBP equals Euros) O 0.727 O 1.375 O 1.92 O 0.75 Question 10 1 pts Which of the following risks can be managed through the use of currency derivatives (e.g. forwards, futures and options) Transaction risk Translation risk Political risk All of the above O A and B only Question 11 2 pts Cross Exchange Rate. Assume the Euro is worth $0.15 and the British Pound is worth $0.01. What is the cross rate of the Euro with respect to the British Pound? That is, how many British Pounds equal 1 Euro? Give an answer with 3 decimals (e.g. 0.123) D Question 12 1.5 pts Cross Exchange Rate. Assume the Japanese Yen is worth 0.163 Euros and the Euro is worth 12.314 British Pounds. What is the cross rate of the Japanese Yen with respect to the British Pound? That is, how many British Pounds equal 1 Yen? Give an answer with 3 decimals (e.g. 0.123) D Question 13 1.5 pts Hedging with Currency Derivatives. Assume that the following transaction is anticipated by a U.S. firms that has no other foreign transactions. How would you go about hedging this transaction? Georgetown Co. plans to make a payment in yen in the future. Purchase Forward or Purchase Call O Purchase Forward or Purchase Put Sell Forward or Purchase Call Sell Forward or Purchase Put Question 14 1.5 pts Hedging with Currency Derivatives. Assume that the following transaction is anticipated by a U.S. firms that has no other foreign transactions. How would you go about hedging this transaction? GM, has a subsidiary in Japan and will be receiving some Yen from it in the near future. Purchase Forward or Purchase Call Purchase Forward or Purchase Put Sell Forward or Purchase Call Sell Forward or Purchase Put