test reviewer 5

________are contracts that derive their value from their underlying asset, the currency

What is the derivatives, named because their values are derived from the underlying asset, are a powerful tool used for two distinct management objectives

• Hedging

• Speculation

• Foreign Currency Derivatives

• Currency derivatives

This financial manager uses the instruments to reduce the risk of the corporation's cash flow. also known as ??

This financial manager takes a position in the expectation of profit. is know as ??

What are the 3 Foreign currency Derivatives ???

Explain the following - Foreign Currency Forwards

Foreign Currency Futures

Foreign Currency Options

The ______ facilitates the trading of the forward contacts on currencies

• Foreign Currency Futures

• Forward Market

• Foreign Currency Forwards

• Foreign Currency Options

If the forward rate is less than existing spot rate it contain what ??

• markdown

• sales

• discount

If the forward rate exceeds the existing spot rate it contain what ??

• Premium

• Prime

• discount

A ______ is another type of contract that can be purchased or sold by speculators and firm

• Currency Put Options

• Currency Futures Market

• Currency Call Options

• Currency Options Market