1.Which of the following is typically a motivation for listing shares overseas

Select one:

a. To reduce issuance costs

b. Excess liquidity in the home market

c. To avoid activist investors or institutional investors

d. To signal corporate governance quality

2.

3.

4.

Find the correct term for each security issued in international financial markets: A bond, issued by an Australian company, denominated in dollars, registered in several national jurisdictions and sold around the world: A bond, issued by an Australian company, denominated in Yen and sold in Japan: Equity offering by a German company sold to U.S. investors: (Drag the words below to the correct spaces) Yankee bond Samurai bond Global Depositary Receipts Eurocredit Kangaroo bond Parellel bond Eurobond Global bond Yankee stocks Suppose company ABC wants to borrow in a foreign currency. Which of the following agreements would best achieve that? Select one: a. A swap O b. A forward-forward agreement O c. A forward rate agreement O d. A currency option Qantas wants to hedge a USD 100 million payable it has due in 180 days from purchasing fuel for its planes. It has the following exchange and interest rates available: Spot Rate AUD1.34/USD Forward Rate (180 days) AUD1.42/USD 180-day USD put option at AUD 1.32/USD 1% premium 180-day USD call option at AUD 1.43/USD 2% premium 180-day USD interest rate (annualized) 3% 180-day AUD interest rate (annualized) 5% Which of the following hedging strategies does NOT help Qantas hedge the transaction risk associated with the USD 100 million payable? Select one: a. Buy a 180-day USD put option b. Buy a 180-day USD call option c. A currency risk sharing contract with a price adjustment clause O d. Risk shifting by invoicing the payable in AUD e. Buy a forward contract to buy USD