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True or false questions and explain with 50 words 1)In general, firms are attracted to list their shares in a country's stock exchange with a

True or false questions and explain with 50 words

1)In general, firms are attracted to list their shares in a country's stock exchange with a large investor base.

2)Currency swaps can be used to help firms borrow cheaply.

3) Assume that inflation in the United States is expected to be 2.5 percent, while inflation in the eurozone is expected to be 1.2 percent over the next year. Today you receive an offer to purchase a one-year call option for US$.02 per unit on euros at a strike price of US$1.90. The current spot rate is US$1.18 per euro. If you believe that purchasing power parity holds, you should accept the offer.

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