Review for Exam 3 FINN 3703
Chapter 5 - Currency Derivatives
_ 1- Grab/10, 1110-, baSEd in Washington, exports products to a German rm and will
recewe Payment 0f 200,000 in three months. On June 1, the spot rate of the euro was
$112, and-the 3-month forwa
FINN 3703 Chapter 1 Practice
1. The commonly accepted goal of the MNC is to:
A maximize short-term earnings.
maximize shareholder wealth.
D) both maximize short-term earnings and minimize risk.
E) maximize international sales.
Identi) the choice that best e
ompletes the statement or answers the question.
1 W u I n . - ' '
a. theory of comparative advantage.
b. Imperfect markets theory.
0. product cycle theory.
(1. none of these.
2. The Sarbanes:0xl
Fall 2013 TakeHome Exam #1 (100 points)
Instruction: The exam consi
each carrying 5 points. Ple
sts of 18 multiple choices each carrying 5 points and 2 short answer questions
17, 2014. Individual wor
ase submit the answer sheets only
Identi- t] -
C e that best compietes the statement or answers the quemon
1. Translation exposure reects:
a. the exposure of a lm's on
going international transa i
b. the exposure of a rm's lo cums to Change me ucmamns'
traders cal currency v
7 Identljy the choice that best completes the statement or answers the question.
_Q: ' 1. If your rm expects the euro to substantially depreciate, it could speculate by
euro call options or euros forward in the forward exchange m
S _ International Finance
prlng 2014 Take-Home Exam #3 (100 points)
instructions: The exam consists of 25 multi
sheets-only (hard copy) in class on Wedn
submission will be accepted.
ple choices each carrying 4 points. Please submit the answer
esday, May 7
Chapter 6Government Influence on Exchange Rates
To force the value of the pound to appreciate against the dollar, the
Federal Reserve should:
sell dollars for pounds in the foreign exchange market and the European
Central Bank (ECB) should sell doll
Study Session 7
Financial Reporting and Analysis:
Financial Statement Analysis: An Introduction
Financial Reporting Mechanics
Financial Reporting Standards
Financial Reporting and Analysis
SS#7 Financial Reporting and Analysis: An Introduc
In valuation of equities, Earnings and interest rates are two most important things. If labor market is
strong, we can raise short term interest rates.
Money that corporations invest in real assets comes ultimately from savings
Financial Statements(10k)- Annual, show balance sheet, income statement, and a statement of
Balance Sheet- Financial statement that shows the value of the firms assets and liabilities
Large government deficits and debt plague many developing countries today
Excessive debt destabilizes financial environment and puts pressure of govt to
expropriate from the financial sector.
Investments: Background and Issues
Players and Vehicles
Trade current consumption in hopes of
Bank deposit, education, insurance
Real vs Financial Assets