【单选题】Assume the following: the current spot rate S¥/$ = 100.0 and the annual interest rates: iJAPAN = 2% and iUS = 10%. According to covered interest parity, if an intern at Citibank sets the one-year forw...
A.
the intern has correctly set the forward rate.
B.
both U.S. and Japan’s investment returns are equal.
C.
the Japan’s investment return exceeds the U.S. investment return
D.
the U.S. investment return exceed the Japan’s investment return
【单选题】Assume that the current spot price per ounce of gold is $1200, the future price for delivery of one ounce of gold in one year is $1320, and the annual storage cost of the gold is 2% of the current spo...
【单选题】Assume the following: the current spot rate S$/£ = 2.00 and the annual interest rates: iUS = 4% and iUK = 8%. According to covered interest parity, if an intern at a bank in U.K. sets the 90-day forwa...
A.
the intern has correctly set the forward rate.
B.
both U.S. and U.K. investment returns are equal.
C.
the British investment return exceeds the U.S. investment return
D.
the U.S. investment return exceed the British investment return
【单选题】The spot price of the market index is $900. After 3 months the market index is priced at $920. The annual rate of interest on treasuries is 4.8% (0.4% per month). The premium on the long put, with an ...