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If a U.S. firm’s sales in Switzerland is much greater than its costs of goods sold in Switzerland, the depreciation of the Swiss franc has a ____ impact on the firm’s ____.

Which of the following theories can be assessed using data that exists at one specific point in time?

What is the function of the knob marked with the red dot?

In order to stimulate a stagnant economy, a government operating under a managed float may attempt to weaken its currency.

A firm buys 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:

The Bank of England is responsible for setting the monetary policy for the European countries participating in the euro.

If interest rate parity holds, and the international Fisher effect (IFE) holds, foreign currencies with relatively high interest rates should have forward discounts and those currencies would be expected to depreciate.

A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.01 and the exercise price of the option is $.76. If the spot rate at the time of maturity is $.86, what is the net amount received by the corporation if it acts rationally?

Assume the following information:   U.S. investors have $1,000,000 to invest: 1-year deposit rate offered by U.S. banks = 10% 1-year deposit rate offered on British pounds = 12% 1-year forward rate of Swiss francs = $1.375 Spot rate of Swiss franc = $1.40   Given this information:

Assume the following information:   Current spot rate of Australian dollar = $.64 Forecasted spot rate of Australian dollar 1 year from now = $.59 1-year forward rate of Australian dollar = $.62 Annual interest rate for Australian dollar deposit = 9% Annual interest rate in the U.S. = 6%   Given the information in this question, the return from covered interest arbitrage by U.S. investors with $500,000 to invest is ____%.