Match the torm to the definition which beot matches it. Contagion A. The spread of a crisis in one country to countries with similar Deth charactoristics. Direct livostments B. The amount paid for an option above its value if exercised. The J Curve C. The change in the value of a currency option for a given change in the undertying exchange rate. Moral Hazezard D. An option that'would NOT be profitable, excluding the cost of the premium, if exercised: Nondeliverable Fonwards E. Capital disbursed into a country far the purpese of exerting control over Out of the Money assets. Special Drawing Rights F. A trading strategy that buys an imvestment in one market whlie selling a very similar investment in another market in order to obtinin a risk-free Time Value profit on the price differential. C. A forward controct on currencies settied on the basis of the differential between the contracted forward rate and the spot rate on seitlement dase settled in the currency of the traders (e.g. settle the change in the Venezudan Bolvar in US dollars); H. When individuals andlor organizations take on more risk than they would nomally take as a result of the support of a protecting authority or organizabion. 1. A bohavior in financial markets in which a majoc market ad; ustment in price changes surpasses the Ikely value it will settee at affer a longer. adjustment period. 1. Capital disbursed into a country that does not reach the 10\% ownership threshold. K. An international reserve asset defined by the IMF as the value of a weighted basket of spocific currencies. L. Three stages of the tade balance adjustment process following a E. Capital disbursed into a country for the purpose of exerting control over assets. F. A trading strategy that buys an investment in one market whlie selling a very similar investment in another market in order to obtain a risk-free profit on the price differential. G. A forward contract on currencies settled on the basis of the differential between the contracted forward rate and the spot rate on settlement date settled in the currency of the traders (e.g. settle the change in the Venezuelan Bolivar in US dollars). H. When individuals and/or organizations take on more risk than they would normally take as a result of the support of a protecting authority or organization. I. A behavior in financial markets in which a major market adjustment in price changes surpasses the likely value it will settle at after a longer adjustment period. J. Capital disbursed into a country that does not reach the 10% ownership threshold. K. An international reserve asset defined by the IMF as the value of a weighted basket of specific currencies. L. Three stages of the tade balance adjustment process following a significant devaluation of a country's currency (initially trade balance worsens despite the currency devaluation before it eventually improves) M. The total cost/price of an option. N. The percentage change in the quantity demanded as a result of a change in price
