1. Which of the following statement(s) about the currency forward market is (are) true?

1. I) In the forward market you buy or sell currency for future delivery at a rate set today.
2. II) A forward market transaction is usually a made-to-order transaction.
3. III) Most forward transactions are settled in six months or less.

Multiple Choice

A. I and II only

B. II and III only

C. I, II, and III

D. I only

2. The two principal options exchanges in the United States are the:

I) International Securities Exchange;

II) New York Stock Exchange;

III) NASDAQ;

IV) Chicago Board of Options Exchange

Multiple Choice

A. II and III only

B. I and IV only

C. I and II only

D. III and IV only

3. Important aspects of international finance include:

1. I) that the basic principles of corporate finance do not apply;
2. II) the process of foreign exchange valuation of different currencies;
3. III) that the NPV principle cannot be applied to foreign operations

Multiple Choice

A. I and III only

B. II only

C. I only

D. III only