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Question 8 Country X is rated to have lower soverign risk than country Y. This means Country X will need to offer a higher risk

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Question 8 Country X is rated to have lower soverign risk than country Y. This means Country X will need to offer a higher risk premium to attract foreign capital Country Y will need to offer a lower risk premium to attract foreign capital Country X will need to offer the same risk premium as country Y to attract foreign capital Foreign investors expect a lower rate of return when investing in country X Country X's royalty is unfit to rule Question 9 3.6 points Save Answ Mike enters into a British pound futures contract with an initial margin of USD 2,025. The maintenance margin is USD 1.500, and the contract size is GBP 62.500. When will Mike get a margin call and in what amount? Step Day Action Futures rate Contract value Change Balance before Variation Balance after margin call margin margin call 1 Buy 2 3 Mon (am) Mon (pm) Tue Wed Thu Settle Settle Settle Sell USD1.5569/GBP USD1.5642/GBP USD1.5562/GBP USD1.5500/GBP USD1.5656/GBP 4 5 On Thursday in the amount of USD 666.25 Mike will not get a margin call On Tuesday in the amount of USD 531.25 On Wednesday in the amount of USD 568.75 On Wednesday in the amount of USD 666,25

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