so multiple choice questions. 10o points) Answer au folowing value of a firm What type of international risk exposure measures the change exchange rates? from changes in future operating cash flows caused any unexpected by 2. Which following statement is INcORRECT? exists. a) when the market equilibrium, the potential for risk-less or arbitrage profit to what b) The theories is not in true" when compared about how exchange rate always work out to be c) students and practitioners observe in the real at which a A forward exchange agreement between currencies states the rate of exchange foreign currency will be bought forward or sold forward at a specific date in the future d) RPPP holds that PPP is not particularly helpful in determining what the spot rate is today, but that the relative change in prices between two countries over a period of time determines the in the exchange rate over that period. 3. Andrea cujoli is a currency speculator who enjoys betting" on changes in the foreign currency exchange market. Currently the s price for the Japanese yen is the 6-month forwar rate is 128.53/s. Andrea thinks the yen will move to x128.oo/s in the next six months. Andrea shoul to profit from changing currency values. a) do nothing b) buy dollar c) sell yen d) sell dollar 4. A forward contract to deliver U.S. dollars for British pounds could be described either as (or a) selling dollars forward; buying pounds forward b) selling pounds forward, selling dollars forward c) selling pounds forward; buying dollars forward d buying dollars forward; buying pounds forward