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Questions 26-30 are based on the following information: Assume the current spot Euro is $1.1/€ and the six-month European put option has a striking price of $1.15/€. Assume the option premium is $0.02/€. What is the net profit/loss of the seller/writer of the option when the value of Euro is $1.12/€ at the maturity date?

The TD 5/5 (3/3 organ) for the Brain is:

Most exchange traded currency futures contracts on CME

Questions 35-39 are based on the following information: In October 2013, there is a consensus in the capital market that the annual inflation rate is likely to be 3.5% in US and -1.5% in China for the next two years. Based on this information, answer the following questions regarding your prediction on foreign exchange rate. Chinese Yuan will be selling at a forward [l1] (premium/discount). The size of the forward premium/discount is [l2] %. Use approximate version of parity relationships. (2 points)

Although IRP tends to hold, it may not hold precisely all the time

The TD 5/5 (3/3 organ) for the eye lens is:

If you think that the euro is going to appreciate against the dollar

Yesterday, you entered into a futures contract to buy €62,500 at $1.20 per €. Your initial performance bond is $1,500 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted?

Marta al final pide [pregunta]

Which of the following statements on Purchasing Power Parity (PPP) is (are) correct?