If you expect the british pound to appreciate you

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International Financial Management
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Chapter 7 / Exercise 21
International Financial Management
Madura
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22.If you expect the British pound to appreciate, you could speculate by ____ pound call options or ____ pound put options.a.purchasing; sellingb.purchasing; purchasingc.selling; sellingd.selling; purchasingANS:A
PTS: 123.Which of the following is correct?
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International Financial Management
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Chapter 7 / Exercise 21
International Financial Management
Madura
Expert Verified
PTS: 124.Research has found that the options market is:
PTS: 125.Assume no transactions costs exist for any futures or forward contracts. The price of British pound futures with a settlement date 180 days from now will:
ANS:CPTS: 1
26.Assume that a currency's spot and future prices are the same, and the currency's interest rate is higher than the U.S. rate. The actions of U.S. investors to lock in this higher foreign return would ____ the currency's spot rate and ____ the currency's futures price.a.put upward pressure on; put upward pressure onb.put downward pressure on; put upward pressure onc.put upward pressure on; put downward pressure ond.put downward pressure on; put downward pressure onANS:C
PTS: 127.A firm sells a currency futures contract, and then decides before the settlement date that it no longer wants to maintain such a position. It can close out its position by:
PTS: 128.If the spot rate of the euro increased substantially over a one-month period, the futures price on euros would likely ____ over that same period.
.
PTS: 1

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