Тестовые вопросы на английском языке по дисциплине "Международный бизнес", страница 3

a. True

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1. Bank A quotes a bid price of $1.52 and an ask price of $1.54 for the British pound. Bank B quotes a bid price of $1.51 and an ask price of $1.53 for the British pound. If a trader has $100,000 to invest, what should the trader do to take advantage of locational arbitrage and how much profit would the trader make?

e. none of the above, locational arbitrage is not possible

2. National Bank quotes a bid price of $1.15 and an ask price of $1.17 for the euro. City Bank quotes a bid price of $1.10 and an ask price of $1.14 for the euro. If you have $1,000,000 to invest, what would your profit be from conducting locational arbitrage?

c. $10,000 3. A bank quotes a bid price of $1.50 for the British pound (£), a rate of $0.75 for the Swiss franc (Sf), and a rate of Sf2.02 for the British pound. If I have $100,000 to invest, what should I do to take advantage of triangular arbitrage and how much profit would I make (assume the bid and ask prices are the same)?

b. buy pounds with dollars, sell pounds for francs, buy dollars with francs, make $1,000 profit.

4. The spot rate is $0.75 for the Swiss franc (Sf), the 180 day forward rate for the Swiss franc is $0.80, the 180 day interest rate in the U.S. is 4%, and the 180 day interest rate in Switzerland is 3%. If I have $100,000 to invest, what would my approximate annual yield be from covered interest arbitrage?

a. 9.87% b. 10.93 c. 21.87 d. 19.73% e. none of the above, a covered interest arbitrage profit cannot be made.

5. Assume the Swiss franc has a 90-day interest rate of 3% and the U.S. dollar has a 4% 90-day interest rate. What is the non-annualized discount or premium on the Swiss franc?

d. 0.97% discount  6. Assume interest rate parity does not hold, yet covered interest arbitrage is still not possible. Which of the following is not a reason for this anomaly?

a. accounting differences 7. Which of the following forms of arbitrage takes advantage of differentials in cross exchange rates?

c. triangular arbitrage   8. The British pound (£) is worth $1.60, while the euro (€) is worth $.95. What is the value of the British pound with respect to the euro?

b. €1.68

9. Arbitrage can be loosely defined as capitalizing on a discrepancy in quoted prices. In many cases, there is no investment of funds tied up for any length of time and no risk involved in the strategy.

a. True 10. According to interest rate parity, if the interest rate in the U.S. is greater than the interest rate in Canada, then the Canadian dollar forward rate should be at a discount.

a. True

11. If the interest rate in the United Kingdom is 6% and the interest rate in the U.S. is 4%, the approximate premium on the British pound forward rate should be 2%.

a. True 12. If interest rate parity exists, then foreign investors will earn the same return as U.S. investors.

a. True 13. In triangular arbitrage, currency transactions are conducted in the spot market to capitalize on a discrepancy in the cross exchange rate between two currencies.

a. True