Chapter 6 - Chapter 6 Currency Futures and Options 1 2 3 4 The International Monetary Market in the Chicago Mercantile Exchange trades A stocks B

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Chapter 6 Currency Futures and Options 1. The International Monetary Market in the Chicago Mercantile Exchange trades . A. stocks B. bonds C. US Treasury Bills * D. currency futures E. all of the above 2. Differences between the futures market and the forward market include . A. price range B. maturity C. size of contract D. credit risk * E. all of the above 3. The buyer and the seller in currency future markets agree on . A. a future delivery date B. the price to be paid C. the quantity of the currency * D. all of the above E. none of the above 4. The main objective of hedgers in currency futures markets is to . A. make a profit * B. protect against exchange risk C. make sure that foreign bills are collected D. protect against political risk E. none of the above 5. Currency futures contracts are normally available . * A. in a pre-determined amount for a specified maturity date B. in flexible maturity dates C. tailored to the desire of the buyer D. tailored to the desire of the seller E. tailored to the desire of both the buyer and the seller 6. The forward market of foreign exchange offers contracts . * A. tailored to meet the needs of the buyers and sellers B. which are normally standardized C. which have a standardized maturity date D. which are regulated by the Commodity Futures Commission E. which are available in a pre-determined amount 7. Currency futures contracts are .
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* A. traded on organized exchanges B. actually settled for delivery C. backed by compensating balances D. handled by commercial banks E. handled by mutual savings banks 8. The lifetime high and low figures in the currency futures quotation table mean . A. the highest and lowest prices during the year B. the highest and lowest prices during the day * C. the highest and lowest prices for each contract month during its life time D. the highest and lowest prices for each week E. none of the above 9. The "open interest" in a currency futures quotation table refers to the
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This note was uploaded on 02/16/2012 for the course FIN 7023 taught by Professor Wald during the Spring '12 term at The University of Texas at San Antonio- San Antonio.

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Chapter 6 - Chapter 6 Currency Futures and Options 1 2 3 4 The International Monetary Market in the Chicago Mercantile Exchange trades A stocks B

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