a.What are swap transactions, and how are they instituted? Can you design a swaps transaction which overcomes market imperfections? What are the potential benefits arising from swaps transactions?

b.What is the difference between a direct and an indirect intervention in the FX market?

c.Why might a firm use forecasting of FX values? What are the different forms of forecasting techniques used? How are these forms affected by market efficiency?

d.What is an International Capital Asset Pricing Model? Under what situations might we use an International Capital Asset Pricing Model as opposed to a domestic model?

e.Given a company exposure => Make / Calculate a Hedging Decision and be able to diagram this position.

f. What are the factors that affect a MNCs valuation of a foreign target?