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Please answer all 4 parts ix Possible explanations for IPO underpricing include... 1 1A a. lockup agreements. b. leverage. c. interest rate risk d. default

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ix Possible explanations for IPO underpricing include... 1 1A a. lockup agreements. b. leverage. c. interest rate risk d. default risk e. "winner's curse". x An opportunity to make a sure profit by trading three currencies simultaneously is called a. covered interest arbitrage. b. uncovered interest arbitrage. c. triangle arbitrage. d. relative purchasing power arbitrage e. none of the above. i. According to the international Fisher effect, if the difference between the nominal interest rate and inflation in France suddenly increase.,... a. the unemployment rate in France should increase. b. the unemployment rate in France should decrease. c. the exchange rate between the U.S. dollar and the euro will increase. d. the exchange rate between the U.S. dollar and the euro will decrease. e. the difference between the nominal interest rate and inflation in Japan should increase. xii. Suppose the exchange rate between currency A and B is expected to increase (i.e, it will take more B currency to purchase each unit of A currency). At the same time, inflation in country A is expected to be higher than in country B. This is a violation of... a. interest rate parity. b. uncovered interest parity. c. absolute purchasing power parity. d. relative purchasing power parity. e. none of the above

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