5.Financial derivatives are powerful tools that can be used by management for purposes of A) speculation B) hedging. C) human resource management D) A and B above. 6.A put option on yen is written with a strike price of 105.00/$. Which spot price maximizes your profit if you choose to exercise the option before maturity? A) X100/$ B) 4105/$ C) V110/$ D) 115/$ 7. The price of a Big Mac in the U.S. is $3.41 and the price in Mexico is Peso 29.0. What is the implied PPP of the Peso per dollar? A) Peso 8.50/$1 B) Peso 10.8/$1 C) Peso 11.76/$1 D) None of the above 8. A firm enters into an agreement to British pounds and U.S. dollars. If the dollar appreciates vs. the pound the firm will realize an accounting profit on the swap transaction. A) pay, receive B) receive; pay C) pay, pay D) receive; receive 9.If the expected future spot exchange rate value of the foreign currency decreases, with the interest rate differential unchanged, the current spot exchange-rate value of the domestic currency A) increases. B) decreases. C) remains unchanged. D) overshoots. 10.Another name for the International Bank for Reconstruction and Development is A) the Recon Bank C) the Marshall Plan B) the European Monetary System D) the World Bank