Moore has identified two markets to buy Euros:                 Market    A                                                        Market B PB              PA                                                         PB                        PA KES128/E         KES 130 /E                       KES  132/E                     KES134/E Establish the locational arbitrage.  Explain spatial arbitrage

answer for part D

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.

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 3. Briefly explain below the different theories about the irrelevance/relevance of exchange rates. Think and discuss about all the firms' factors that are affected by movements in exchange rates.

In an ISO there tends to be two auction markets (PJM Model); day ahead and real time. Explain the difference between these markets and why the need for two auctions

Which of the following eliminates settlement risk?   Trans-European Automated Real-Time Gross Settlement Express Transfer System (TARGET) TARGET2 payment system Continuous Linked Settlement (CLS) Intercompany net settlement systems Real-Time Gross Settlement (RTGS) systems

Suppose that all possible types of perpetuities (differentiated in payment starting periods and payment amounts) are traded at fair prices in the market. In this circumstance, could you find a fair price of all types of annuities?

1. Credit spreads least likely depend on which of the following:   A. Market supply   B. Market demand   C. Financial markets   D. Inflation