Companies that compete in an international marketplace may be faced with three types of risk owing to foreign exchange.These are: *       A. specific, translation and transaction risk.       B. translation, transaction and economic risk.       C. accounting, transaction and translation risk.       D. accounting, specific and transaction risk.

a)differentiate between business risk and financial risk within a company.   b)differentiate between real assets and financial assets of a company.  c)differentiate between cash (spot) markets and derivative markets.  d)describe the major differences between forward contracts and option contracts.

Which of the following situation is NOT the case that a domestic company is exposed to foreign currency exchange risk? a. A firm commitment to enter into a foreign currency transaction. b. A forecasted foreign currency transaction that has a high probability of occurrence. c. An investment in a domestic subsidiary. d. An actual existing foreign currency transaction that results in recognition of assets or liabilities.

(a)Define short sales and discuss its merits. (b) Explains the significance of ethics in the investment and trading world. (c) Discuss the Differences among types of investors. (d) Which risks may be diversified and how?