According to ASC 815, which of the following is not an underlying? O A monthly average temperature. A security price The number of foreign currency units. The price of a barrel of oil.

A major risk faced by a swap dealer is exchange rate risk. This is   a)the probability exchange rates will move against the dealer.   b)the probability that a foreign counterparty will default in a currency swap.   c)none of the options   d)the probability that either counterparty defaults in a currency swap.

Explain the following: Liquidity management currency issue lender of last resort financial supervision Management of foreign currency reserves Determination of exchange rate policy

How can the company use currency futures contracts to hedge against exchange rate risk?

Explain about the hedging against the foreign currency risk.

a)explain the structure of a pay-fixed, receive-fixed currency swap, and describe the cash flows at its initiation date, settlement dates, and termination date.     b)explain how to determine the notional amounts in two currencies in a currency swap.       c)explain the equivalency between a currency swap and a pair of bond transactions in different currencies.       d)describe the four types of currency swaps.       e)describe the relationship between currency swaps and interest rate swaps.

Could you show a chart to indicate the nearest interest rate and the currency in which it will be paid/received?

h) discuss the relationship between the prices of puts, calls, and forward/futures contracts on the same underlying asset using the put-call-forward/futures parity.      i) discuss the boundary conditions on the prices of American and European call option contracts on futures.       j) explain and discuss the use of interest rate parity in pricing foreign currency forwards and futures.      k) describe how spot prices are determined using the cost-of-carry model.

A(n). OOO futures hedge is most likely to result in ongoing payments over the life of the foreign exchange instrument. options money market forward

Which of the following are money market securities?I. Jumbo CDsII. Short-term municipal debtIII. U.S. Treasury billsIV. Commercial paper   A.  I and IV only   B.  II and III only   C.  I, II, and IV only   D.  II, III, and IV only   E.  I, II, III, and IV