1.Of the following hedging methods which one involves risk sharing between exporter and importer?

a. Currency options

b. exposure netting

c. currency collars

d. cross hedging

2. The efficient frontier is the set of portfolios that has the _____ standard deviation for its level of expected return?

a. smallest possible

b. least correlated

c. greatest possible

d. most feasible

3.A _____ issue is an offering, usually dominated in_____, that is registered in several nationals jurisdictions and marketed to investors around the world.

a. global bond, all major currencies

b. global bond, U.S. dollars

c. eurobond, eurocurrency

d. universal bond, euros

4.On Friday, September 13, 1992, the Italian lira was worth L769.23/DM. Over the weekend the lira devalued to L833.34/DM. By how much had the lira devalued against the DM?

a. 7.69%

b. 5.21%

c. 8.33%

d. 9.27%