Question: Help me 1) A fixed exchange rate system is analogous to oil markets that are also based on a) prices that are affected by imbalances
Help me
1) A fixed exchange rate system is analogous to oil markets that are also based on
a) prices that are affected by imbalances in supply and demand
b) prices that do not move at all with supply demand imbalances
c) quantities of oil supplied and demanded not changing over time
2. Currency risk hedging for international bidding related cashflows is best done by:
a) currency forwards
b) currency futures
c) currency options
3. According to the interest rate parity theory:
a) currency with the lower interest rate will be at a forward premium
- covered interest arbitrage will always be possible
- rates of return in dollars from foreign risk-free T-bills are entirely riskless
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