question 17: The price of a currency that will be delivered in the future is called,

1. The spot exchange rate
2. the forward exchange rate
3. hedging
4. exchange rate arbitrage

Qustion 18: If the Japnese central bank sells yen and buys US dollars, the US dollar will appreciate.

• True
• False

Question 19: If US consumers increase their demand for foreign products and foreign travel, the US dollar would tend to depreciate as more dollars are supplied to foreign exchange markets.

• True
• False

Question 20: The Black-Scholes Equation is mostly used by traders who trade high- frequency derivatives.

• Ture
• False