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9. Ideally, a firm or ivestor wanting to insest money overseas would ideally desire to target this in a country and currency which: exhibits a low interest rate and is expected to depreciate in the future exhibits a low interest rate and is expected to appreciate in the future a. exhibits a high interest rate and is expected to depreciate in the future exhibits a high interest rate and is expected to appreciate in the future b. d. A U.S. firm can hedge its accounis pavables in Brazilian real against appreciation by: 10. a. selling Brazilian real futures b. buying Brazilian real futures c. buying Brazilian real puts selling Brazilian real in the forward market 11. If you believe the Brazilian real will fall from the present spot rate of S0.5555/Brazilian real, which speculative strategy would yield the largest speculative gain? sell futures on Brazilian real a. b. buy futures on Brazilian real d. none of the above 12. A speculator in options that has buy call options on the Brazilian real a put option on Japanese yen has taken a position in Japanese yen a. purchased; bullish b. purchased; bearish c. sold; bearish d. need more information to answer the question

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Answer #1

1.
exhibits a high interest rate and is expected to appreicate in the future
2.
buying Brazilian real futures
3.
sell futures on Brazilian real
4.
purcahsed, bearish

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