1..A American firm is under commitment to pay interests of Can$ 569995 and Can$

926292 on 31st July and 30th September separately. The Firm is hazard opposed

furthermore, its strategy is to support the dangers implied in all unfamiliar money exchanges.

The Finance Manager of the firm is considering supporting the danger thinking about two

strategies for example fixed forward or alternative agreements.

It is currently June 30. Following citations with respect to paces of trade, US$ per Can$,

from the association's bank were gotten:

Cost for a Can$/US$ alternative on a U.S. stock trade (pennies per Can$, payable on

acquisition of the alternative, contract size Can$ 50000) are as per the following:

Strike PriceCallsPuts

(US$/Can$) July Sept. July Sept.

0.931 .562 .560 .881 .75

0.950 .651 .641 .922 .34

As per the idea of money chief if choices are to be utilized, one

month alternative ought to be purchased at a strike cost of 94 pennies and multi month

choice at a strike cost of 95 pennies and for the rest of by the

choices the firm would bear the actual danger. For this, it would use forward rate as

the best gauge of spot. Exchange costs are disregarded.

Suggest, which of the over two strategies would be proper for the

American firm to support its unfamiliar trade hazard on the two interest installments.

2. Utility is a.......................entity and shifts from one individual to another.

(a) Subjective

(b) Objective

(c) Restrictive

(d) None of the abovementioned

3. Negligible Utility Analysis hypothesis is propounded by :

(a) Hicks and Allen

(b) Samuelson

(c) Marshall

(d) Robbins.

4. Lack of concern bend Analysis hypothesis is supportive of beat by :

(a) Hicks and Allen

(b) Samuelson

(c) Marshall

(d) Robbins.

5. Utility is :

(a) Subjective

(b) Objective

(c) Both (a) and (b)

(d) None of these

6. As per law of lessening peripheral utility, the additional fulfillment that the shopper infers

from an additional unit of a decent goes on................

(a) Increasing

(b) Falling

(c) Same

(d) Either (a) Or (b)

7. At the point when TU is expanding at expanding rate MU is.........................

(a) Decreasing

(b) Constant

(c) Increasing

(d) Negative

8. The idea of cardinal utility:

(a) Alfred Marshal

(b) Hicks and Allen

(c) Lionnel Robbins

(d) None of these.

9. Customer Surplus = ?

(a) What a customer isn't prepared to pay-what he really pay.

(b) What a customer is prepared to pay - what he really pay.

(c) What a customer pay reluctantly - what he is prepared to pay.

(d) What a purchaser really pay - What a shopper is prepared to pay.

10. A bunch of detachment bends is called :

(a) Indifference Schedule

(b) Indifference Map

(c) Indifference Polygon

(d) None of the abovementioned