Question $61$

Three motives for swaps are currency risk management, commercid needs, and comparative advantage. True or False

Question $62$

Revenue exposure is frequently called translation exposure. True or False

Question $63$

On Octoter $23,$ the closing exchange rate of British pounds was $$1$ Bo Calls which would mature the following January with a strice price of $$1\mathrm{.}85$ were traded at $$0\mathrm{.}10.$ if the erchange rate of Botich pounds rises to $$200$ pror to the January opton expration date what is the percentage return on investment for an investor who purchased a call on October $23?$

Question $64$

The theory of interest rate parfy means that the difference between a forward rate and a spot rate equals the difference bewween a domestic interest rate and a foreign interest rate. True or False

Question $65$

When a firm has dividends payable denominated in foreign cuirency the firm is said to have economic exposure. True or False

Question $66$

A forward maket hedge involves the level of the future wage for foreign workers True or False

Question $67$

One example of a direct exchange quote is Euro $0\mathrm{.}82$ per $ in the U$.$S$.$ True or False

Question $68$

Foreign exchange markets are efficient if you have inside nlormation. True or False

Question $69$

Assume that the spot rate changed from $$0\mathrm{.}64$ per Swiss franc on January $t$ in one recent year to $$0\mathrm{.}68$ per Swiss franc on December $31$ of that year. What is the percentage change in the franc spot rate using indirect quotes for a US company?

Question $70$

Foreign exchange markets are efficient i$\_$ Fon