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QUESTION 7 Suppose the price of a good is €10 and the original spot rate is $1/€. Suppose the euro strengthens by 5%. The cos
QUESTION 11 Ain) occurs when two parties agree to exchange currency and execute the deal at some specific date in the future.
QUESTION 12 If the current spot rate between the USD and Swiss franc (CHF) is USD 0.85/CHF and the 3-month forward rate is US
QUESTION 13 Assume India has outstanding debt in U.S. dollars. If the U.S. dollar weakens in terms of the Indian rupee, India
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Answer #1

rate positively..

Ans 7 Correct answer is option :
Increases from $10 to $10.50
Ans 11 Correct answer is option :
Forward exchange
Ans 12 Correct answer is option :
the USD is selling at a forward premium
Ans 13 Correct answer is option :
is better off
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