A. are only used by foreign currency traders to speculate on currency fluctuations. B. are generally legal contracts or exchange traded securities that are designed to transfer risk for a price. C. generally involve three parties. D. Both B and C are true

The question relates to either Chapter 9 ( Foreign Currency Translations and Hedging Foreign Exchange Risk ) or Chapter 10 ( Translation of Foreign Currency Financial Statements ) For Advanced Accounting 13th Edition by Joe B. Hoyle, Thomas F, Schaefer, and Timothy S. Doupnik. Details are included in the image Need all calculations, journal entries, work, etc.

Please quickly and with neat explanation.

Imagine that parties W, X, Y, and Z enter into CDS contract on the reference entity A. The figure below summarizes bilateral CDS agreements (e.g., W buys protection from X, and makes periodic payments to X). Let's assume the reference entity A is in default. In addition, Y is also in default. In such a case, which of the following entities would not be affected by the counterparty risk? W X O Y ○ None Protection Buyer on A W X Protection Seller on A N Protection Seller on A Protection Buyer on A Protection Buyer on A Y Protection Seller on A

5. Which of the following is incorrect regarding establishing central counterparties (CCPs)? (a) CCPs allow netting of contracts. (b) CCPs can not be applied to OTC trades. (c) CCPs can create more transparency in trading. (d) CCPs mitigate counterparty risk in the financial system. 6. Which one of the following statements is incorrect regarding the margining of exchange-traded futures contracts? (a) If an investor fails to deposit variation margin in a timely manner, the positions may be liquidated by the carrying broker. (b) Initial margin is the amount of money that must be deposited when a futures contract is opened. (c) A margin call will be issued if the investor's margin account balance drops below the mainte- nance level. (d) A margin call will be issued only if the investor's margin account becomes negative

Subject: accounting

The fact that the clearinghouse is the counterparty to every futures contract issued is important because it eliminates _________ risk. A. Market B. Basis C. Interest rate D. Credit

A futures contract a. is not traded on an organized exchange and is customized to meet the needs of the parties. b. is not traded on an organized exchange and is subject to formal regulations which results in standardized contrasts. c. is traded on an organized exchange and is subject to formal regulations which results in standardized contrasts. d. is traded on an organized exchange and is customized to meet the needs of the parties.

Which of the following statements about interest rate swaps is/are true? I - The notional principals are exchanged by the counterparties at the end of an interest rate swap's life II - The differences in how credit risk is priced gives rise to comparative advantage in borrowing through swaps. III - When an intermediary is involved in a swap, the intermediary assumes no counterparty risk for either end of the transaction IV - It is possible for both counterparties to benefit from a swap even if one counterparty has the absolute advantage in all types of borrowing O a. I, II, III, and IV O b. II and IV O c. II, III, and IV O d. I, II, and IV Oe. II and III

A swap contract Select one: A. relates to the trading of an asset owned by one company for another owned by a second company. B. is an arrangement between two or more parties to exchange future cash flows. C. can be used to increase or decrease the ratio of fixed and variable interest costs in its cost structure. D. Both B and C are true.