Question 19 1 pts You sold a put option on Swiss Francs for $.03 per unit. The strike price was $.78, and the spot rate at the time when the option was expiring was $.76. Assume you immediately sold off the Swiss Francs received if the option was exercised. Also assume that there are 10,000 units in a Swiss Franc option. Your net profit/loss (negative number means a loss) on the option was dollars. 200 O 300 o -300 0-100 100 OO -200 Question 20 Which of the following is NOT a name for an exchange rate system: Free Float O Dollarization Dirty Float O Peg Fixed No exception, all of the listed are names of exchange rate systems Question 21 1 p Which of the following is NOT an exchange rate system that actually exists in practices O Fixed Peg Dirty Float No exception, all of the listed are exchange rate systems that exist in practice Dollarization Free Float Question 22 1 pts According to our discussion in class, and specifically the example of UK leaving the eurozone project, the major downside all pegging your currency to another is National pride Volatility in exchange rates Giving up independent fiscal policy International Monetary Fund sanctions None of the listed, there are no downsides to pegging currencies Giving up independent monetary policy Question 23 Which of the following is NOT a reason why governments intervene in currency markets: Reduce volatility No exception, all of the listed are reasons why governments intervene in currency markets Respond to temporary disturbances Establish implicit boundaries Smooth exchange rate movements Spend excess reserves of a foreign currency Question 24 1p Montenegro unilaterally (without EU's approval) switching to Euro as its currency is an example of None of the listed Sterilized intervention Snake mechanism o Eurofication Gold standard Dollarization Non sterilized intervention