13) Which IRR would Coseta have earned? a. 1890 b. 12 c. -5.67 d.-8.93 14) Coseta would have been better-off placing her $3 million in a U.S. bank savings account. A) TRUE B) FALSE 15) The U.S. has a surplus on the current account and a deficit in the financial account A) TRUE B) FALSE. 16) The current spot rate is $0.95 = 1.0, and interest rates on 1-yr risk-free securities in Europe and the US, are 9% and 4% respectively. Your employer asks you to negotiate a 1- yr forward contract that will enable him to exchange dollars for 1,000,000. If a bank quotes a forward rate of $0.93, on a 1-year contract, you should accept it. A) TRUE B) FALSE 17) Which is the highest forward rate that you should be willing to accept? A) $0.909 B) $0.8911 C) $0.9300 D) $0.9064 E) $0.9100 18) An increase in the dollar price of the euro represents an appreciation of the dollar A) TRUE B) FALSE 19) A speculator who anticipates an appreciation of the euro would want to buy euro calls. A) TRUE B) FALSE. 20) A speculator who anticipates a crash of the U.S. economy would want to buy euro calls. A) TRUE B) FALSE 21) The buyer of a forward contract has the right, but not the obligation to fulfill the contract A) TRUE