Which of the following is NOT right?
A. Capital is one of the factors of production.
B. Capital is one of the most mobile factors on the international level.
Capital is traded mainly through international and domestic financial markets.
D. A country's capital can only be used for domestic production
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When short-term interest rates become lower in Tokyo than in New York, interest arbitrage operations will most likely result in a(n):
A. Increase in the spot price of the yen
B. Increase in the forward price of the dollar
C. Sale of dollars in the forward market
D. Purchase of yen in the spot market
A "call" option gives General Motors the right to sell pounds at a specified price, while a put option gives General Motors the right to buy pounds at a specified price.
A foreign currency option is an agreement between a holder (corporation) and a writer (commercial bank) giving the holder the right to buy or sell a certain amount of foreign currency at any time through some specified date.
An option whose exercise price is equal to the spot rate is said to be .
A. in-the-money
B. at-the-money
C. out-of-the-money
D. on-the-spot