Which of the following crises involved the use of "tesobonos"?
A. The 1982 debt crisis
B. The Asian currency crisis in 1997
C. The Brazilian crisis in 1999
D. The Mexican crisis in 1994
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Which country first broke out the 1997 Asian financial crisis?
A. Thailand
B. South Korea
C. Hong Kong
D. Malaysia
A foreign currency option gives the holder the right to a foreign currency whereas a foreign currency option gives the holder the right to an option.
A. call, buy, put, sell
B. call, sell, put, buy
C. put, hold, call, release
D. none of the above
Consider the following information to answer question 11 – 13.Assume the following: (1) the interest rate on 6-month treasury bills is 8% per annum in the United Kingdom and 4% per annum in the United States; (2) today's spot price of the pound is $1.50, while the 6-month forward price of the pound is $1.485.By investing in U.K. treasury bills rather than U.S. treasury bills, and not covering exchange rate risk, U.S. investors earn an extra return of .
A. 4% per year, 1% for the 6 month
B. 4% per year, 2% for the 6 months
C. 2% per year, 0.5% for the 6 months
D. 2% per year, 1% for the 6 months
Foreign currency options are available both over-the-counter and on organized exchanges.