QUESTION 16 The cost of trade credit varies with the a length of time between the end of the discount period and the final due date length of time between the end of the discount period and when the firm purchased from the supplier b c rate of the cash discount d both A and C. QUESTION 17 An investor purchased Canadian dollars at an exchange rate of0.97 U.S. to I Canadian dollar. The Canadian dollars cost her $1,000,000 (U.S. dollars). How many Canadian dollars did she buy? a $970,026 c $1,030,927 QUESTION 18 Assume that a buyer of Italian wine saw the following quotes: spot rate of 0.75 curos to the U.S. dollar rate of 0.744 euros to the U.S. dollar. What does this information imply? forward rate of 0.747 curos to the U.S. dollar: 90-day forward b The forward euro is selling at a premium as compared with the spot euro c The dollar is expected to maintain the same value in the near future relative to the d None of the above QUESTION 19 Ain) gives the holder the right but not the obligation to sell a stated number of shares at a specified price for a limited time. c interest rate futures contract d put option