Which statement is FALSE?

Question 4 options:

1)	all arbitrage involves a degree of exchange rate risk.

2)	speculation involves a risk of loss if exchange rates move in the opposite direction to that expected.

3)	foreign exchange swaps may be viewed as combinations of spot and forward contracts.

4)	Currency options are especially useful when a player does not want to be locked in to buying or selling a currency at a future time.

Question 8

The balance of payments is a balance sheet that equates the balance of the current account recording of the cross-border movement of goods and services with the balance of the capital account.

Question 8 options:

	1) True
	2) False

Question 10

A cross-currency interest rate swap is a product under which the fixed-interest payments in one currency are exchanged for variable interest payments in another currency.

Question 10 options:

	1) True
	2) False

Question 11

The 'law of one price' says that products will have the same price in different countries when the exchange rates between various countries are allowed for.

Question 11 options:

	1) True
	2) False