QUESTION 2 1. Which of the following is an example of foreign exchange swap transaction? A. Company A bought 10 million Euro in the spot market at the exchange rate of 1.20 USD/EUR three months ago. The company sold the 10 million Euro at 1.22 USD/EUR in the spot market today. B. Company A bought 10 million Euro in the spot market at the exchange rate of 1.20 USD/EUR and simultaneously signed a forward contract to sell the 10 million Euro at the exchange rate of 1.22 USD/EUR three months later. C. Company A sold 10 million Euro in the spot market today at 1.20 USD/EUR. It plans to buy the 10 million Euro back from the spot market next week. D. Company A signed a contract to buy 10 million Euro at a fixed exchange rate of 1.22 USD/USD three months later. QUESTION 3 1. Given the following exchange rates, calculate the percentage change in the USD value relative to the Chinese yuan (CNY) in 2020. January 1, 2020: 7.05 CNY/USD December 31, 2020: 0.1608 USD/CNY. Pick the closest answer from the choices below. A. USD appreciated 11.8% relative to Chinese yuan in 2020. B. USD depreciated 11.8% relative to Chinese yuan in 2020. C. USD depreciated 13.4% relative to Chinese yuan in 2020. D. USD appreciated 13.4% relative to Chinese yuan in 2020