The price of a tall in October 2010. vainilla latte in Zagreb is 21.20kn. In New ork City, the price of a tall vanilla latte is $2.65. The exchange rate between Croatian kunas (kn) and U.s, dollars is kn 6/S. The purchasing power parity the exchange rate becomes kn V. a4 b.s c.6 d.7 e.8 9 10 11. (4 pts) Starbucks opened its first store in Zagreb, Croa 12. According to No. 11, if the PPP is the "correct" rate, the actual Croatian kuna is overvalued or undervalued based upon PPP rate by ( h.400% d.-5% f. 10% g. 33% c.-15% e. 5% a. -50% b.-25% 13, when the IRP is true, spot rate of Sfr 1.4948/S, a 90-day euro Swiss franc deposit rate of 4.00% per annum, and a 90-day euro-dollar deposit rate of 8.04% per annum. The 90 day forward rate should be a. 1.46. b. 1.47c. 1.48. d. 1.49. e. so. f.1.51 Sfr/$ 14. (a. Dealers b. Market makers c, Brokers d. Arbitragers e. Speculators) try to profit from simultaneous differences in exchange rates in different markets. 15. (a. Dealers b. Market makers e, Brokers d. Arbitragers e. Speculators) facilitate trading between dealers without themselves becoming principals in the transaction. 16.A) (a. swap b. Eurocurrency c. LIBOR d. option e. euro) transaction in the interbank market is the simultaneous purchase and sale of a given amount of foreign exchange for two different value dates and both purchase and sale are conducted with the same counterparty 17. Which of the followings about a good corporate governance is true? a. Family businesses on average are more profitable than public companies. b. State-owned enterprises are more profitable than the private-owned enterprises. c The number of the publicly traded firms is increasing because of the Sarbanes-Oxley Act. d. A company without full disclosure of internal transactions is in general of good corporate governance 18. About the corporate governance, which is wrong a. in Anglo-American firms maximization of shareholders' wealth is the goal. b. in non-Anglo-American firms all stake holders play roles. c. Some investors seek short-term profits and some seek long term ones and there exists conflicts. d. In the non-Anglo-American markets, government intervention may be common e. Failures in corporate governance is not important in recent years