HD EDU
HD
EDUCATION
FINS 3616
Quiz1 刷题课 (III)
题目
TUTOR: Kumi
讲解例题均源于 Testbank 和网页改编题
(Test Bank)Multinational Financial Management,10th Edition
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1. Texas Instruments, a US firm, sells shares in USD to a European investor.
Based on market demand and supply, what will happen to the EUR/USD exchange rate, all else equal?
a. The USD/EUR exchange rate will increase.
b. The EUR/USD exchange rate will increase.
c. The EUR/USD exchange rate will decrease.
d. None of the choices.
e. The EUR/USD exchange rate will remain the same.
2. The Australian Consumer Price Index (CPI) is currently 284.4 and the Swiss CPI is currently 291.6.
Economists expect that in one year the Australian CPI will be 308.5 and the Swiss CPI will be 308.1.
The current spot exchange rate between the two countries is CHF1.0447/AUD.
If relative purchasing power parity holds, what is the expected spot exchange rate in one year?
a. CHF1.0461/AUD
b. CHF1.0725/AUD
c. CHF1.0189/AUD
d. CHF1.0698/AUD
e. CHF1.0176/AUD
3. On which corner of the Impossible Trinity triangle would you place the USA (United States of America).
Consider the USA only during the 21st century period.
a. None of these corners
b. B
c. C
d. A
e. There is not enough information
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4. It is the year 2035 and the Australian government entered into a target-zone arrangement with the UK.
Australian firm K-Roo has a GBP 250,000 payable due in 180 days.
Assuming the current exchange rate is AUD1.53/GBP, the central rate for the AUD/GBP is set at 1.77 AUD per GBP,
and the currencies are allowed to fluctuate with a 13% band on either side,
what is the maximum possible amount (in terms of AUD) that K-Roo could lose due to changes in the future exchange rate?
a. a.2,475
b. b.222,895
c. 49,725
d. d.57,525
e. 117,525
5. USD1.15/GBP
EURO.85/USD
AUD1.55/USD
EURO.90/GBP
AUD1.05/NZD
How many of these quoted spot rates feature the GBP as the term currency?
a. 1
b. 3
c. 2
d. 0
e. None of the choices
6. The Danish krone changes from A$0.7877 each at the start of 2020 to A$0.8027 each at the end of 2020.
Over that same year, inflation in the prices of all goods and services in Denmark is 7.3%, whereas in Australia it is 3.9%.
What is the amount of real decrease (-) or real increase (+) that the Danish krone experiences against the Australian dollar
during 2020?
a. +11.5%
b. -11.5%
c. -1.3%
d. +5.2%
e. -5.0%
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7. You have the following spot rates between the Australian dollar (AUD), the Russian ruble (RUB), and the Chinese yuan (CNY):
Rate 1 Rate 2 Rate 3
CNY 0.0974/RUB CNY 5.3669/AUD RUB 48.078/AUD
Which of the following is the closest to the arbitrage profit that is possible at these rates?
a. 14.61%
b. 16.27%
c. 12.75%
d. 13.41%
e. 17.11%
8. The ________ for/of USD in Australia is driven by the demand for ________ by Australian consumers.
a. supply; Australian goods and services
b. demand and supply; Australian goods and services
c. demand; Australian goods and services
d. demand; US goods and services
e. supply; US tariffs
9. You are given the following interest and inflation rates:
US interest rate: 7%
UK interest rate: 18%
US inflation: 2%
Canada inflation: 11%
If parity conditions hold, the interest rate in Canada will approximately be equal to:
a. 23%
b. 2%
c. 27%
d. 16%
e. 11%
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10. USD1.15/GBP
EURO.85/USD
AUD1.55/USD
EUR0.90/GBP
AUD1.05/NZD
How many of these quoted spot rates feature the USD as the base currency?
a. None of the choices
b. 1
c. 0
d. 3
e. 2
11. Suppose it is January 1980 and the USD/Deutsche Mark (DM) exchange rate is DM1 = 0.91
and the DM/French Franc (FF) exchange rate is FF1 = 0.95.
Assuming that no arbitrage opportunities exist, which of the following is closest to the FF/USD exchange rate?
a. 1.0440 French francs per USD
b. 0.8645 French francs per USD
c. 1.0526 French francs per USD
d. 1.1567 French francs per USD
e. 0.9579 French francs per USD
12. The spot BRL/USD exchange rate is BRL3.3/USD, and interest rates are 5.11% p.a. in Brazil and 2.98% p.a. in the US.
What is the value of the 12-month forward exchange rate as implied by CIRP?
a. BRL3.2331/USD
b. BRL3.3346/USD
c. BRL3.3683/USD
d. BRLO.3093/USD
e. BRL3.2657/USD
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13. Australia and New Zealand have 420.69 and 666.66 total resources, respectively.
Each country produces only two goods, toilet paper and hand sanitizer.
Australia can produce each roll of toilet paper for 10 resources and each bottle of hand sanitizer for 19 resources.
New Zealand can produce each roll of toilet paper for 6 resources and each bottle of hand sanitizer for 37 resources.
Assume each country would prefer to consume more toilet paper and hand sanitizer than it currently can in an autarky.
Also assume that each country can produce fractional units of each good.
Between which range of prices of hand sanitizer (in terms of rolls of toilet paper) will there be gains from trade?
a. Between 0.93 and 1.07
b. Between 0.60 and 1.95
c. Between 1.90 and 6.17
d. Between 0.16 and 0.53
e. Between 0.51 and 1.67
14. Which of the following is false regarding options?
I. The writer of a call option has the obligation to purchase the underlying currency from the option purchaser if the option is
exercised.
II. The purchaser of a call option has the right to purchase the underlying currency at the strike price.
III. The purchaser of a put option has the right to sell the underlying currency at the strike price.
IV. The writer of a put option has the obligation to purchase the underlying currency from the option purchaser if the option is
exercised
a. I
b. None of the choices
c. III
d. I
e. IV
15. Suppose JP Morgan quotes spot and 180-day forward rates on the Swedish Krone (SEK) of USD0.8468-72, 11-9.
What are the outright 180-day forward rates that JP Morgan is quoting?
a. USD0.8457/SEK -USD0.8463/SEK
b. None of the choices
c. USDO.8479/SEK -USD0.8481/SEK
d. USDO.8468/SEK -USD0.8472/SEK
e. USDO.8234/SEK-USD0.8386/SEK
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16. If ________ holds, then the real exchange rate is equal to 1.
a. covered interest rate parity
b. relative purchasing power parity
c. absolute purchasing power parity
d. uncovered interest rate parity
e. the Fisher Effect
17. You live in Australia and want to try to make some money through interest rate arbitrage abroad.
You notice the following rates quoted online:
Bid Ask
Spot exchange rate AUD1.1748/USD AUD1.1789/USD
310-day Forward exchange rate AUD1.2434/USD AUD1.2712/USD
310-day USD interest rate 6.60% p.a. 6.83% p.a.
310-day AUD interest rate 8.71% p.a. 9.30% p.a.
What will your profit (in AUD) be 310 days from now if you borrow AUD7 million and invest in the United States then convert
back to the Australian dollar?
a. AUD 242,000
b. AUD 203,146
c. AUD 219,261
d. AUD 292,187
e. AUD 724,800
18. Lamborghini Company wants to sell 2,386,943 Euros (EUR).
Its banker quotes bid-ask rates of EUR1.4870/USD - EUR1.5150/USD.
Which of the following is closest to the USD value of selling EUR 2,386,943?
a. USD1,575,539.93
b. USD3,549,384.24
c. C. None of the choices
d. USD3,616,218.65
e. USD1,605,207.13
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19. If the British pound depreciates against the Swiss franc by 9.7% over a particular period,
then over that same period the Swiss franc will have appreciated against British pound by what percentage?
a. 8.39%
b. 9.52%
c. 8.84%
d. 10.74%
e. 9.70%
20. A put option is available for Swiss franc with an exercise price of AUD0.7754 and a premium of AUD0.0440.
Assume that there are no brokerage fees.
The future spot rate at which the ______ of the option breaks even is AUD ________.
a. both buyer and seller; AUD 0.8194
b. seller; AUD 0.7314
c. buyer; AUD 0.7314
d. both buyer and seller; AUD 0.7314
e. buyer; AUD 0.8194