Read questions very carefully. For the longer problems, then cannot understand your handwriting your answers will not be graded. For calculation questions, you have to show your work to get a partial cred 1. (2pts) The amount of international portowwetent financial account in the balance of payments component of True False 2. (2pts) The spot rate is the exchange rate used for immediate exchange of currencies False 3. (2pts) Futures market has a centralized clearing house for settlement True True False 4. (2pts) Increase in US$ value against major currencies would account balance of U.S. as import and exports a increase, increase, decrease b. decrease, increase; decrease c increase, decrease: increase d. decrease; decrease; increase - the current 5 12pts) If a US firm desires to avoid the risk from exchange rate fluctuations, and the US firm is paying euro 100,000 in 30 days, it could a. Set up a 30-day forward contract to buy euro. b. Set up a 30-day forward contract to sell euro. c. Set up a 60-day forward contract to buy euro d. Set up a 60-day forward contract to sell euro 6. (2pts) The greater exercise rate, the will be the premium of a call option on this currency, and the will be the premium of a put option on this currency, other things are equal. A. greater; lower B. greater, greater C. lower, greater D. lower; lower