There are two types of currency options based on expiration dates. They are the_______ options.

a. American and European

b. British and Asian

c.fixed and variable

d. American and British

The Chicago Board of Trade and the International Monetary Market require a _______________ similar to a ___________ and a _________________ for all contract holders.

a. initial margin, performance bond, maintenance margin

b. initial margin, performance bond, line of credit

c.credit check, bank loan, maintenance margin

d. letter of credit, performance bond, maintenance margin

Which of the following best describes the role of mark to market accounting used by the Chicago Board of Trade when valuing futures contracts?

a. safety measure to protect contract holders

b. a method for investors to use to speculate with currency futures

c. a method that ENRON avoided when it entered the energy futures market

d. a method used by MNC hedgers to mitigate exchange rate risk