QUESTION 7 If the spot rate of euro is 1.2 U.S. dollars per euro and the 180-day forward rate is 1.15 dollars per euro, then which of the following statements is CORRECT? a. The forward euro is selling at a premium to the spot rate. b. The forward euro is worth more in terms of U.S. dollars than the spot currency. c. The European interest rate over the next 180 days must be higher than that in the U.S. O d. The European interest rate over the next 180 days must be lower than that in the U.S. QUESTIONS Which of the following is NOT a consideration that sometimes holds a firm back from going public? a. High underwriting fees. b. The SEC requires public firms to disclose a large amount of information timely, which can be quite costly. c. Increased liquidity will make the stock price more volatile and hence less predictable. d. Increased transparency will make it more difficult for the managers to do what they want to do QUESTIONS