题目内容

For an investor who starts with dollars and wants to end up with dollars in the future, which of the following choices is an example that includes speculating?

A. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to sell the foreign currency
Buy a dollar-denominated financial asset
C. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and sign a forward exchange contract to buy dollars
D. Sell dollars at the spot rate, invest the proceeds in foreign currency-denominated financial instruments, and then buy dollars at the future spot rate

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The proportionate difference between the current forward exchange rate value of a currency and its current spot value is the _____ premium.

A. investment
B. frequent exchanger
C. forward
D. currency-option

_____ is buying a country's currency spot and selling that country's currency forward, to make a net profit from the combination of the difference in interest rates between countries and the forward premium on the country's currency.

A. Covered interest arbitrage
B. Uncovered interest arbitrage
Covered interest parity
D. Uncovered interest parity

Suppose the interest rate on 6-month treasury bills is 5 percent per year in the United Kingdom and 3 percent per year in the United States. Also, today’s spot exchange price of the pound is $2.00 while the 6-month forward exchange price of the pound is $2.02. By investing in U.K. treasury bills rather than U.S. treasury bills, and covering exchange-rate risk, U.S. investors earn an approximate extra return for 6 months of:

A. 2.0 percent.
B. 1.5 percent.
C. 3.0 percent.
D. 0.5 percent.

Suppose the interest rate on 6-month treasury bills is 5 percent per year in the United Kingdom and 3 percent per year in the United States. Also, today’s spot exchange price of the pound is $2.00 while the 6-month forward exchange price of the pound is $2.02. Consider the expected future spot rate of pounds is $2.04. By investing in U.K. treasury bills rather than U.S. treasury bills, and NOT covering exchange-rate risk, the approximate extra return earned by U.S. investors for 6 months will be:

A. 0.5 percent.
B. 5.0 percent.
C. 3.0 percent.
D. 3.5 percent.