536Q1[1] - Version A FIN 536, 11S Fin 536 International...

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Version A FIN 536, 11S Page 1 of 1 Fin 536 – International Finance Quiz 1 NAME:______________________ Due Date: February 22, 2011 Answer All Questions. Read all the answers carefully and select the best answer for each question. Answer the next TWO questions based on the following quotes that you receive from a bank: Spot 1.0267-89 $/€ 30-day Forward Points 24-17 $/€ 30-day Outright Forward ???? 1. What is the 30-day outright forward rate? a) 1.0250-65 $/€ b) 1.0243-72 $/€ c) 1.0284-13 $/€ d) 1.0217-24 $/€ e) 1.0262-48 $/€ 2. Based on the quotation, $ is traded at forward _____________ because __________________________. a) Discount against €; one € is exchanged for more dollars in the forward market than in the spot market. b) Discount against €; more $s are needed to exchange for one € in the forward market than in the spot market. c) Discount against €; less $s are needed to exchange for one € in the forward market than in the spot market. d)
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This note was uploaded on 11/07/2011 for the course FIN 536 taught by Professor Staff during the Spring '11 term at S.F. State.

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