2 AaBbc AaBBC AaBbc AaBBC AaBbce Heading 4 Heading 5 Heading 6 Heading 7 1 Normal Paragraph Styles d. 87.062,50 LIBOR is: a. the interest rate commonly charged for loans between banks. b. the average inflation rate in European countries. c. the maximum loan rate ceiling on loans in the international money market. d. the maximum deposit rate ceiling on deposits in the international money market. e the maximum interest rate offered on bonds that are issued in London. The valuation of an MNC should rise when an event causes the expected cash flows from foreign subsidiaries to and when the foreign currencies denominating these cash flows are expected to a. decrease; appreciate b.increase; appreciate c. decrease; depreciate d. increase; depreciate 2. A put option on Canadian dollars with a strike price of Euro .63 is purchased by a speculator for a premium of Euro 0.05. If the Canadian dollar's spot rate is S.64 on the expiration date: Should the speculator exercise the option on this date or let the option expire? If yes, show via calculations the final outcome. 15 points CHE EU