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151 If the United States sells beef to Japan, the U.S. beef producer is paid with Открыть
152 Forward bid and ask spreads widen with increased maturity because of the increasing thinness of markets as maturity increases. It is harder to keep buy and sell orders balanced simply by changing the bid-ask rates in markets with fewer transactions. Открыть
153 Currency futures are bets on what will happen to the spot exchange rate, settled …. Открыть
154 … are traded in specialized markets in standard contract sizes, such as d125,000. There are relatively few maturity dates. Открыть
155 Because of their low transaction costs and easy settlement, currency futures appeal to …. Открыть
156 The payoff profiles for futures are similar to those for forward contracts, except that futures outcomes are a little … because of marking-to-market risk. Открыть
157 Marking-to-market risk is the result of uncertainty in the path of the future’s contract value between purchase and sale and the volatility of … rates. Открыть
158 Futures and forward exchange rates are linked by arbitrage. Открыть
159 Currency options give buyers the right or opportunity, but not the obligation, to buy or sell foreign exchange at a pre-agreed exchange rate, the strike exchange rate. Call options give the buyer the right to purchase the foreign currency at the strike exchange rate, and put options give the buyer the right to sell the foreign currency at the strike exchange rate. Открыть
160 American options allow the buyer to exercise after to the expiry of the option, while European options allow the buyer to exercise before the expiry date of the option. Открыть