3) covered interest rate parity holds, the greater the extent to which a foreign interest rate exceeds the US dollar interest rate, then the A) smaller will be the forward premium of the foreign currency on the dollar B) larger will be the forward discount of the foreign currency on the dollar C) smaller will be the forward discount of the foreign currency on the dollar D) larger will be the forward premium of the foreign currency on the dollar 4) A UK exporter expects to receive payment from a foreign country in a foreign currency 90 days from the date of the transaction. The exporter might not cover the transaction in the forward market if: A) the UK currency was expected to strengthen by an amount in excess of that implied by interest differentials B) the foreign country's balance of trade was expected to involve a big deficit C) the foreign country's government was expected to revalue its currency by an amount in excess of interest differentials during the 90 days D) the foreign currency was expected to depreciate by an amount in excess of interest rate differentials against the pound within the period there is no obligation on your part. If you have purchased 5) If you have purchased there is an obligation on your part B) futures contracts; call options A) put options; forward contracts D) call options, put options C) forward contracts; futures contracts