Uffered by commercial banks offered by commercial banks 6. Assume that Swiss investors have franes available to invest in securities, and they initially view U.S. and British interest rates as equally attractive. Now assume that U.S. interest rates increase while British interest rates stay the same. This would likely cause: a) The Swiss demand for dollars to decrease and the dollar will depreciate against the pound. b) The Swiss demand for dollars to increase and the dollar will depreciate against the pound. The Swiss demand for dollars to increase and the dollar will appreciate against the pound. d) The Swiss demand for dollars to decrease and the dollar will appreciate against the pound. Tf grunter evneriencee hioh in Aations relatha - 7. If a country experiences high inflation relative to the U.S., its exports to the U.S. should its imports should and there is pressure on its currency's equilibrium value. a) Decrease; increase; upward b) Decrease; decrease; upward c) Increase; decrease; downward d) Decrease; increase; downward antly S. Kalons Inc. is a US-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is not an appropriate hedging technique under these circumstances? a. Purchase Canadian dollars forward. b. Purchase Canadian dollars futures contracts c. Purchase Canadian dollar put options d. Purchase Canadian dollar call options. 9. The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. The forward is percent. a) Discount; 1.9 b) Discount; 1.8 c) Premium; 1.9 d Premium; 1.8