About 95% of all futures contracts are settled by real physical delivery of foreign exchange between buyers and seller.
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The main advantage(s) of over-the-counter foreign currency options over exchange-traded options is(are)
A. expiration dates tailored to the needs of the client.
B. amounts that are tailor made.
C. client desired expiration dates.
D. all of the above.
Peter Simpson thinks that the U.K. pound will cost $1.48/£ in six months. A 6-month currency futures contract is available today at a rate of $1.44/£ . If Peter was to speculate in the currency futures market, and his expectations are correct, which of the following strategies would earn him a profit?
A. Sell a pound currency futures contract
Buy a pound currency futures contract.
C. Sell pounds in six months.
D. Sell pounds today.
The current U.S. dollar-yen spot rate is ¥85/$. If the 90-day forward exchange rate is ¥88 /$ , then the yen is selling at a per annum (年化)________ of ________.
A. premium; 1.57%
B. premium; 6.30%
C. discount; 3.41%
D. discount; 13.64%
The U.S. dollar suddenly changes in value against the euro moving from an exchange rate EUR/USD of 0.8909 to 0.8709. Thus, the dollar has ________ by ________.
A. appreciated; 2.30%
B. depreciated; 2.30%
C. appreciated; 2.24%
D. depreciated; 2.24%