90-Which one of the following is NOT a basic difference between currency futures and forward contracts?

Select one:

a. trading location

b. size of contracts

c. frequency of delivery

d. a contract with specific currency volume, exercise dates and fixed exchange rates

91-Which one of the following features are NOT an advantage when hedging with currency futures?

Select one:

a. they are less expensive than forward contracts.

b. they have less credit risk than forward contracts.

c. they use mark to market accounting.

d. they have standard contract sizes.

92-Suppose the current spot rate for the euro is $1.19. A call option with a strike of $1.18 is said to be ____.

Select one:

a. at-the-money

b. in-the-money

c. out-of-the money

97-The exercise exchange rate or price in a currency option is known as the _____.

Select one:

a. market price

b. strike

c. spot rate

d. current spot rate

98-With respect to the economic environment of the future, Skipper and Kwon believe that countries not adapting with reforms will be left behind and face all of the following EXCEPT

Select one:

a. more democratization

b.

Cultural alienation

c.

Leading to more political instability

d.

Deepening economic stagnation

99-Risk managers of the future must pay particular attention to emerging markets, especially China since _____.

Select one:

a. it will continue to grow faster economically

b. it will place increasing demand on world resources especially energy

c. it will place increasing demand on world resources especially oil

d. it will join the OPEC cartel