Please answer the question.

American Depository Receipts $($ADRs$)$ represent foreign stocks denominated in U$.$S$.$ dollars that trade on American stock exchanges. $(15$points$)$

a$.$ True b$.$ False

Sponsored ADRs are created by a bank at the request of the foreign company that issues the underlying security. $(15$points$)$

a$.$ True b$.$ False

Global Registered Shares purchased on one exchange $($ex: New York$)$ is not fully exchangeable with shares purchased on another exchange $($ex: Tokyo$).(15$points$)$

a$.$ True b$.$ False

Bulldog bonds are euro$-$denominated Eurobonds originally sold in France. $(15$points$)$

a$.$ True b$.$ False

Yankee bonds are bearer bonds and subject to withholding taxes. $(15$points$)$

a$.$ True b$.$ False

If Japanese firms issue yen$-$denominated bonds in Europe, those bonds are Eurobonds. $(15$points$)$

a$.$ True

b$.$ False

The delivery of the underlying asset is seldom made in forward contracts while the delivery is usually made in futures contracts. $(15$ points$)$

a$.$ True b$.$ False

You purchased a call option for $10,000$ at $$\frac{1\mathrm{.}60}{}.$ Your option is out of the money when euro is at $$1\mathrm{.}50.(15$points$)$

a$.$ True b$.$ False

The quote for a swap is $4\mathrm{.}50-4\mathrm{.}60\%$ for underlying dollar LIBOR. This means the swap bank receives fixed$-$rate of $4\mathrm{.}50\%$ against paying dollar LIBOR, while the swap bank pays fixed$-$rate of $4\mathrm{.}60\%$ against receiving dollar LIBOR. $(15$points$)$

a$.$ True b$.$ False

A firm with exposure to an appreciating currency can reduce transaction exposure with a strategy of paying early and collecting late. $(15$points$)$

a$.$ True b$.$ False