Please answer all

1 II II. 7) Choose the correct balances in this transaction: a currency trader employed at Bank A sells 60,000 to a currency trader at Bank B for $90,000 using its correspondent relationship with Bank B. Bank A's dollar-denominated account will fall by $90,000 II. Bank A's pound-denominated account will fall by 60,000. Bank B's pound-denominated account will rise by 60,000 a) I only d) I and II only b) Il only e) None of the above answers c) III only 8) The future market involves the almost-immediate purchase or sale of foreign exchange. does not involve the sale of futures, forwards, and options on foreign exchange. has more counterparty risk than the spot market a) I only d) 1& III only b) II only e) None of the above answers c) III only 9) Which of the following statements are false? 1. As a seller of the future contract, you gain if the next-day (later) price decreases from the future agreed price. II. For forward contracts, there are daily settlements which reduce eliminate counter party risks. Similar to a future contract, you can enter an option contract without any up-front cost. a) I only d) I and II only b) Il only c) None of the above answers c) III only 10) Which of the following statement(s) is are true? 1 Selling a call option is not the same as buying a put option. Prior to maturity, an American option will always cost more than a similar European option. III A registered bond has higher YTM compare to a similar bearer bond. a) I only d) I and III only b) II only e) None of the above answers c) III only 11) Which of the following statement(s) is/are false? 1. For a bearer bond, possession is evidence of ownership. If an option is out of the money, then the holders should exercise it to capitalize the gains. The vast majority of new international bond offerings make floating coupon payments. a) Tonly d) II & III b) Il only c) None of the above answers c) III only 12) Which of the following statement(s) is/are false? 1. When you buy from the dealer, you transact at the ask price. II. The dealer will offer higher bid-ask spread if the security is more risky III. This is a possible quote from a dealer: bid price of $1.1250 and ask price of S1.1150/ a) I only d) I and III only b) II only e) None of the above choices c) III only 13) According to this exam's instructions, the student can do the following communication(s) about this exam 1. skypes with a tutor whatapps with a classmate III. seeks help in a discussion board a. I only d. I, II & III b. II only e. None of the above choices C. III only