1)

The currency futures markets have a long history and are ______________ due to their information driven nature.

Select one:

a. heavily regulated by the U.S. federal government

b. extremely volatile

c. extremely complicated

d. not volatile

2)

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

3)

Currency options are most often used when __.

Select one:

a. there is a future exchange rate risk for a definite event such as an accounts receivable.

b. there is a future exchange rate risk for a definite event such as an notes payable.

c. there is a future exchange rate risk for a definite event such as an accounts payable.

d. there is a future exchange rate risk event that is uncertain to occur.