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100 1. Short questions and definitions. Briefly define the following objects or terms (at most one sentence) and provide examples if necessary: (a) Define and
100 1. Short questions and definitions. Briefly define the following objects or terms (at most one sentence) and provide examples if necessary: (a) Define and give an example of relative purchasing power parity. (b) Are implied forward rates good predictors of future spot rates? Explain. (c) Define and give an example of reciprocal arbitrage. (d) What is uncovered interest parity used for? (e) What is the most important difference between an FX forward and futures contract? (f) What are American quotes? Give an example. (g) Explain what is meant by a money market hedge. (h) Define synthetic debt and give an example. (i) What is the difference between FX risk and exposure? (j) Define and give an example of translation exposure. 100 1. Short questions and definitions. Briefly define the following objects or terms (at most one sentence) and provide examples if necessary: (a) Define and give an example of relative purchasing power parity. (b) Are implied forward rates good predictors of future spot rates? Explain. (c) Define and give an example of reciprocal arbitrage. (d) What is uncovered interest parity used for? (e) What is the most important difference between an FX forward and futures contract? (f) What are American quotes? Give an example. (g) Explain what is meant by a money market hedge. (h) Define synthetic debt and give an example. (i) What is the difference between FX risk and exposure? (j) Define and give an example of translation exposure
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