Multiple choice question

4) When the exchange rate for the euro changes from $1.00 to $1.20, then, holding everything else constant, the euro has A) appreciated and German cars sold in the United States become more expensive. B) appreciated and German cars sold in the United States become less expensive. C) depreciated and American wheat sold in Germany becomes more expensive. D) depreciated and American wheat sold in Germany becomes less expensive. 5) Futures differ from forwards because they are A) used to hedge portfolios. B) used to hedge individual securities. C) used in both financial and foreign exchange markets. D) standardized contracts. 6) The elimination of riskless profit opportunities in the futures market is referred to as A) speculation. B) hedging. C) arbitrage. D) open interest