According to the international Fisher Effect, if an investor purchases a five-year U.S. bond that has an annual interest rate of 6% rather than a comparable British bond that has an annual interest rate of 5%, then the investor must be expecting the ________ to ________ at a rate of at least 1% per year over the next 5 years.

Question 5 options:

	British pound; revalue
	U.S. dollar; depreciate
	U.S. dollar; appreciate
	British pound; appreciate

Mr. Saso holds a short position in euros through five March futures contracts, with each contract size equaling 125,000. The settlement price is $1.18/. If the spot exchange rate, at maturity, is $1.12/, what is the total value of Mr. Sasos position at maturity?

Question 6 options:

	Loss of $7,500
	Profit of $7,500
	Loss of $37,500
	Profit of $37,500

Related to a futures contract, what is the maintenance margin?

Question 14 options:

	The amount of money necessary when a loss on a futures position requires you to allocate more funds to return the margin to the initial or original margin level.
	The existing balance in the margin account at any time over the lifetime of the contract
	The balance in the margin account on the settlement date
	The amount of money that is required to open a buy or sell position on a futures contract.