Question
1 Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.3042 = $1.00, and the exchange rate between the U.S. dollar and
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Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.3042 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.1119 euros. What is the cross-rate of Swiss francs to euros (SF/Euro)?
Enter your answer rounded off to FOUR decimal points.
1 points
QUESTION 2
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Venture capital is most appropriate to be the source of funding for which one of the following? Choose only one
New, high-risk venture
Bankruptcy reorganization
Global expansion for an established, profitable firm
Seasonal production
Daily operations for an established, profitable firm
1 points
QUESTION 3
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The exchange rate is 1.1416 Swiss francs per U.S. dollar. How many U.S. dollars are needed to purchase 6,771 Swiss francs?
Enter your answer rounded off to two decimal points. Do not enter $ in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 4
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Which one of the following terms is defined as an underwriting for which the underwriters assume full responsibility for any unsold shares?
Private placement
Firm commitment underwriting
Initial public offering
Rights offer
Best efforts underwriting
1 points
QUESTION 5
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Suppose it takes 1.2 U.S. dollars today to purchase one British pound today. Currency forecasters predict that the U.S. dollar will depreciate by 11% against the pound over the next 30 days. What is the Euro/US Dollar exchange rate in 30 days?That is, how many euros can 1 dollar buy in 30 days?
Enter your answer rounded off to FOUR decimal points.
1 points
QUESTION 6
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Suppose one U.S. dollar can purchase 169 yen today. If the yen depreciates by 14% tomorrow, how many yen could one U.S. dollar buy tomorrow?
Enter your answer rounded off to two decimal points. For example, if your answer is 12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 7
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Which one of the following is the name given to a registration of securities under SEC 415 which permits a firm to issue the securities over a two-year period?
Negotiated registration
Seasoned registration
Delayed registration
Extended registration
Shelf registration
1 points
QUESTION 8
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You just returned from a trip to Venezuela and have 7,178 bolivares fuertes in your pocket. How many dollars will you receive when you exchange this money if the U.S. dollar equivalent of the bolivares fuertes is 0.1475?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 9
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In New York, you can exchange $1 for 0.8353 or 0.6354. Suppose that, in Berlin, 1 costs 1.1727. How much profit can you earn on $13,146 using triangle arbitrage?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
1 points
QUESTION 10
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You can exchange $1 for either C$1.2272 or 130.34. What is the cross rate between the Japanese yen and the Canadian dollar? That is, solve for per C$.
Enter your answer rounded off to two decimal points.
1 points
QUESTION 11
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Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.1857 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.0759 euros. What is the cross-rate of euros to Swiss francs (Euro/SF)?
Enter your answer rounded off to FOUR decimal points.
1 points
QUESTION 12
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Currently, you own 10% of the outstanding stock of ABC Company. The company has decided to issue additional shares of stock and has given you the first option to purchase 10% of those additional shares. Which one of the following will you be participating in if you opt to purchase the shares you have been offered?
Rights offer
Red herring offer
Private placement
IPO
General cash offer
1 points
QUESTION 13
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Suppose it takes 1.15 U.S. dollars today to purchase one British pound today. Currency forecasters predict that the U.S. dollar will depreciate by 4% against the pound over the next 30 days. What is the U.S. dollar/Euro exchange rate in 30 days?
Enter your answer rounded off to FOUR decimal points.
1 points
QUESTION 14
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ABCUnderwriters retains the difference between its buying price and its offering price on new securities. What is this amount called?
Rights price
Markup
Spread
Commission
Offer
1 points
QUESTION 15
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Your friend from Germany has decided to come and visit you in the United States. You estimate the cost of her trip at $9,256. What is the cost to her in euros if the U.S. dollar equivalent of the euro is 1.393?
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