Question: Common elements in many currency crises include each of the following EXCEPT A) a fixed exchange rate system that overvalued the local currency B) a

Common elements in many currency crises include each of the following EXCEPT A) a fixed exchange rate system that overvalued the local currency B) a low levels of foreign currency debt C) a precipitous drop in the value of the local currency D) None of the above are common during currency crises The spot rate for the highly volatile USDZAR pair is 14.75 and the 3-month FWD rate 15.25. Based on your analys's of the FX rates, you are confident that the spot rate will be 15.00 in 3 months. Assunce that you would like to buy or sell ZAR 10 MM. What actions do you need to take to speculate in the FWD market? A) Take a short forward position on ZAR 10 MM at 15.25. B) Buy ZAR today at the spot rate, sell them forward. C) Take a long forvard position on ZAR 10MM at 15.25. D) You would not use the USDZAR pair to speculate The spot EURCHF rate is 1.10 and the 1 year forward rate is 1.05. The forward premium (discoum A) EUR trading at an 9.1% premium to the CHF. B) EUR trading at a 4.55% premium to the CHF. C) EUR trading at an 9.1% discount to the CHF. D) EUR trading at a 4.55% discount to the CHF. The EURUSD spot rate is 1.1500 and the 180-day forward premium for the EUR is 6%. Find the 180-day forward EURUSD price

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