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NEW QUESTION: 1
A currency with a lower interest rate will trade:
A. at a forward premium
B. cannot be determined solely on the basis of interest rates
C. at a forward discount
D. at the same prices for forwards as for the spots
Answer: A
Explanation:
Explanation
Given covered interest parity, the currency with a lower interest rate will trade at a forward premium. Choice
'b' is the correct answer.
For an intuitive reasoning, consider a currency forward contract that matures in 3 months. The seller has agreed to sell, say JPY 1,000,000 in exchange for USD 10,000 in the future. In order to cover himself, he borrows the USD right now and converts it to JPY at spot which he puts in a JPY deposit. Assuming JPY interest rates are less than USD interest rates, he pays more on his USD borrowing than he receives on his JPY deposit. Therefore he has to price the forward contract at a premium to spot to cover the interest rate differential.
NEW QUESTION: 2
A worker is scheduled to work from Monday to Friday. As an HR administrator, you receive a call from the worker on Friday evening 16-Jun-2017, that they are on vacation from 17-Jun-2017 (Saturday) and will be back at work on 26-Jun-2017 (Monday). The absence type for vacation has no duration formula or plans attached and the duration is measured in Days. There is a calendar exception on 23-Jun-2017 (Friday).
What should be the start date, end date, and the duration of this absence record if the "Schedule nonworking days" is set to "Not enabled"?
A. Start Date: 17-Jun-2017End Date: 25-Jun-2017Duration: 8
B. Start Date: 19-Jun-2017End Date: 26-Jun-2017Duration: 5
C. Start Date: 19-Jun-2017End Date: 22-Jun-2017Duration: 4
D. Start Date: 19-Jun-2017End Date: 25-Jun-2017Duration: 4
E. Start Date: 17-Jun-2017End Date: 25-Jun-2017Duration: 9
F. Start Date: 17-Jun-2017End Date: 26-Jun-2017Duration: 10
Answer: C
NEW QUESTION: 3
Drag and Drop Question
Drag and drop the fiber cable connection types to the appropriate image.
Answer:
Explanation: