10. An Australian company has received USD in payment for goods exported. At the time of receiving the USD, the exchange rate is quoted as AUD/USD 0.5650. Rather than immediately converting the USD into AUD, the company decides to 'speculate' on a favorable movement in the exchange rate. In today + n days' the exchange rate is AUD/USD 0.5750. Which of the following statements is correct? a. All of the statements. b. None of the statements. c. The exporter company has made a loss on its FX position. d. The opportunity cost of interest forgone will affect the profitability of the FX position e. The company has taken a 'long position in the USD. 11. If price levels in New Zealand increase faster than price levels in Singapore due to higher inflation, we would expect: a. Interest rates in Singapore to be higher than interest rates in New Zealand. b. The New Zealand dollar to appreciate against the Singapore dollar. c. The Singapore dollar to appreciate against the New Zealand dollar. e. Singaporean productivity to have increased more slowly than NZ productivity 12. If an investor is holding a large number of shares listed on the NYSE, intends to sell in one month's time, and wishes to protect the value of the share portfolio, he/she may: a. buy a call option b. sell a call option c. write a put option d. sell a futures contract. e. buy a futures contract. 13. Major advantage of forward contracts compared with futures contracts is that: a. they are considered more liquid. b. they are generally exposed to lower default risk. c. they cost less to purchase. d. they are highly standardised. e. none of the given answers