QUESTION 13 Other things equal an increase in U.S. government spending will tend to increase the trade deficit. TRUE FALSE. Information for questions 14 through 19. Today, a U.S. importer places an order for machine tools that will arrive in Houston in 60 da when he must pay 1,000,000 euros to the German exporter. Assume that the price of at-the-money, 60-days, euro calls is $0.05, an price of 60-days, at-the-money euro puts is $0.04. Please note that the spot rate today is $1.25. All prices are per euro QUESTION 14 The U.S. importer is long euros. TRUE FALSE QUESTION 15 Unhedged, he will suffer a loss if the dollar appreciates. TRUE FALSE QUESTION 16 The U.S. importer could hedge currency risk with a forward contract to purchase dollars with euros in 60 days. TRUE FALSE