without explanations i need the answers only

5. When two borrowers engage in a currency swap, they agree to:

A.pay to each other any depreciation or appreciation of the currency. B.trade one currency for another, thus avoiding the foreign exchange market. C.make payments on each other's borrowings in a different currency. D.exchange fixed-rate interest payments for variable-rate interest payments.

1 points

Question 2

4. A producer that is worried about the future price that will be available when the product is to be sold can hedge this price risk by:

A.selling a futures contract. B.buying a put option. C.buying a futures contract. D.selling a call option.

1 points

Question 3

1. A firm can hedge the risk of upward movement in raw material prices by:

A.buying a call option. B.selling a futures contract. C.buying a put option. D.selling a put option.

1 points

Question 4

2. One distinguishing difference between the buyer of a futures contract and the buyer of an option contract is that the futures buyer:

A.pays a much higher premium than option buyers. B.has increased rather than reduced risk. C.can lose no more than the initial premium. D.has an obligation to purchase, not a choice.

1 points

Question 5

3. The primary purpose of financial futures is to:

A.translate one currency into another. B.protect against swings in interest rates or prices of financial assets C.guarantee the repayment of loan principal. D.benefit from increases in interest rates.