roughly the amount of hich he or she is 13. Which of the following four positions will be profitable if the price of XYZ stock rises? 1. Buying a put on XYZ stock II. Buying XYZ stock III. Writing (or selling) a call on XYZ stock IV. Buying a call on XYZ stock A) II and III only B) II and IV only C) I and IV only D) I, II, and Ill only 14. Suppose that the Japanese yen is currently trading at a forward discount in the forward- exchange market. This implies that most likely, according to covered interest rate parity: A) This currency has low exchange-rate risk. B) This currency is gaining strength in relation to the dollar C) Level of interest rates must be higher in Japan than in the United States D) None of the above 15. Increasing the credit period from 30 to 60 days, in response to a similar action taken by all of our competitors, would likely result in: A) An increase in the average collection period. B) A decrease in bad debt losses. C) An increase in sales. D) Higher profits