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The existing spot rate of the Canadian dollar is $.82. The premium on a Canadian dollar call option is $.04. The exercise price is $.81. The option will be exercised on the expiration date if at all. If the spot rate on the expiration date is $.86, the profit as a percent of the initial investment (the premium paid) is:

Assume the following information:   Spot rate today of Swiss franc = $.60 1-year forward rate as of today for Swiss franc = $.63 Expected spot rate 1 year from now = $.64 Rate on 1-year deposits denominated in Swiss francs = 7% Rate on 1-year deposits denominated in U.S. dollars = 9%   From the perspective of U.S. investors with $1,000,000, covered interest arbitrage would yield a rate of return of ____%.

If your firm expects the euro to substantially appreciate, it could speculate by ____ euro call options or ____ euros forward in the forward exchange market.

Briefly explain how banks with a disproportionate amount of long-term loans on the asset side of their balance sheet while funding those loans with a disproportionately large amount of short-term liabilities would be impacted by a sudden and sharp increase in interest rates.  In addition, briefly note how a bank facing this situation could improve its balance sheet to mitigate its sensitivity to changes in interest rates?

The government safety net creates ________ problem because risk-loving entrepreneurs might find banking an attractive industry.

The three factors that explain the risk structure of interest rates are ______________________.

An increase in the liquidity of corporate bonds will ________ the price of corporate bonds and ________ the required yield of Treasury bonds, everything else held constant.

If you have a position where you might be obligated to buy pounds, you are:

There is ________ for any zero-coupon bond whose time to maturity matches the holding period.

What group emerged from this period with the most control over the governance of England (and, later, Great Britain)?