国际财务管理试题

aaaCHAPTER2ICHAPTER3aaA)B)C)D)aaaaaa,aaaAa1.MultipleChoiceQuiz(1)Supposeyouobservethefollowingexchangerates:€1=$1.25;£1=$2.00.Whatmusttheeuro-poundexchangeratebe?(2)Intheforwardmarket,A)Marketparticipantsagreetobuyorsellforeigncurrencyinthefutureatpricesagreed-upontoday.B)Marketparticipantsagreetobuy(notsell)foreigncurrenciesinthefutureatpricesagreed-upontoday.C)Marketparticipantspaytodayforaspecificamountofforeigncurrencytobereceivedinthefuture.D)Marketparticipantsagreetobuyandsellfixedamountsofforeigncurrencyatspotpricesthatwillprevailinthefuture.(4)Supposeyouobservethefollowingexchangerates:€1=$.85;£1=$1.60;and€2.00=£1.00.Startingwith$1,000,000,howcanyoumakemoney?A)Exchange$1mfor£625,000at£1=$1.60.Buy€1,250,000at€2=£1.00;tradefor$1,062,500at€1=$.85.B)Startwithdollars,exchangeforeurosat€1=$.85;exchangeforpoundsat€2.00=£1.00;exchangefordollarsat=$1.60.(5)Consideratraderwhotakesalongpositioninasix-monthforwardcontractonBritishpounds.Theforwardrateis$1.75=thecontractsizeis£62,500.Atthematurityofthecontractthespotexchangerateis$1.65=£1.00(1)Thecurrentspotexchangerateis$1.95/£andthethree-monthforwardrateis$1.90/£.Basedonyouranalysisoftheexchangerate,youareprettyconfidentthatthespotexchangeratewillbe$1.92/£inthreemonths.Assumethatyouwouldliketobuyorsella.Whatactionsdoyouneedtotaketospeculateintheforwardmarket?Whatistheexpecteddollarprofitfromspeculation?b.Whatwouldbeyourspeculativeprofitindollartermsifthespotexchangerateactuallyturnsouttobe$1.86/£.1.MultipleChoiceQuiz(1)SupposeinterestratesintheU.S.are5%whenthespotexchangerateis$0.75=€1andtheinterestrateinFranceis8%peryear.Whatmusttheone-yearforwardexchangeratebe?A)ThecostofahaircutinColumbiaMissourishouldbeexactlythesameasthecostinHongKong.B)Ratesofinflationmustbethesameeverywhere.C)Spotexchangeratesarethebestpredictorofexpectedinflationrates.D)ThecostofaBigMacsandwichshouldbereflectedinthecostoftwoall-beefpatties,specialsauce,lettuce,cheese,pickles,onionsandasesameseedbun.(3)SupposethatthespotexchangerateforJapaneseyenis¥122/$andthattheoneyearforwardexchangerateforJapaneseyenisTheone-yearinterestrateis5%intheU.S.What'stheinterestrateinJapan?(4)Supposeyouobservethefollowingexchangerates:S($/€)=0.85(i.e.€1=$.85)Theone-yearforwardrateisF($/€)=0.935(i.e.€1=$.935)Therisk-freeinterestrateintheU.S.is5%andinGermanyitis2%.How1A)BorrowdollarsintheU.S.,exchangeforeuros,investinGermany,enterintoaon-yearforwardcontract;inoneyear,translatetheeurosbackintodollarsattheforwardrate.B)Borroweuros,translateintodollarsatthespot,investintheU.S.at5%foroneyear.Attheendoftheyear,translatepartofyourdollarinvestmentbackintoeurosattheforwardratetorepayyoureurodebt.C)Thereisnoprofitablearbitrageopportunities.3Months6Months(1)SupposethatthetreasurerofIBMhasanextracashreserveof$100,000,000toinvestforsixmonths.Thesix-monthinterestrateis8percentperannumintheUnitedStatesand6percentperannuminGermany.Currently,thespotexchangerateis1perdollarandthesix-monthforwardexchangerateis€0.99perdollar.ThetreasurerofIBMdoesnotwishtobearanyexchangerisk.Whereshouldhe/sheinvesttomaximizethereturn?(2)Duetotheintegratednatureoftheircapitalmarkets,investorinboththeU.S.andGreatBritainrequirethesameexpectedrealinterestrateof3percent.TheexpectedannualinflationintheU.S.is2percentandintheU.K.expectedannualinflationis5%.Thespotexchangerateiscurrently£1.00=$1.80.CalculatethenominalinterestratesinBritainandtheU.S.assumingtheFishereffectholds.Chapter11(2)Forwardrateagreementscanbeusedforspeculativepurposes.Ifonebelievesrateswillbelessthantheagreementrate,A)Takeashortpositioninaforwardrateagreement.B)ThepurchaseofaFRAisthesuitablepositionC)ThesaleofaFRAisthesuitableposition.(1)GrecianTileManufacturingofAthens,Georgia,borrows$1,500,000atLIBORplusalendingmarginof1.25percentperannumonasix-monthrolloverbasisfromaLondonbank.Ifsix-monthLIBORis4½percentoverthefirstsix-monthintervaland53/8percentoverthesecondsix-monthinterval,howmuchwillGrecianTilepayininterestoverthefirstyearofitsEurodollarloan?(2)Abanksellsa“threeagainstsix”$3,000,000FRmohpereginningthreemonthsfromtodayandendingsixmonthsfromtoday.ThepurposeoftheFRAistocovertheinterestrateriskcausedbythematuritymismatchfromhavingmadeathree-monthEurodollarloanandhavingacceptedasix-monthEurodollardeposit.Theagreementratewiththebuyeris5.5percent.Thereareactually92daysinthethree-monthFRAperiod.Assumethatthreemonthsfromtodaythesettlementrateis47/8percent.DeterminehowmuchtheFRAisworthandwhopayswho--thebuyerpaysthesellerorthesellerpaysthebuyer.Chapter12D)Thereisaserialnumberonthebondandtheowner'snameisassignedtothatserialnumber(3)Otherthingsequal,investorswillgenerally____onbearerbondsthanonregisteredbondsofcomparableterms.A)demandahighercreditratingB)demandahigheryieldC)acceptaloweryieldD)a)andb)arebothcorrect(4)Thecreditratingofaninternationalborrower:A)Dependsonthevolatilityoftheexchangerate.B)Dependsonthevolatility,butnotabsolutelevel,oftheexchangerate.C)Isusuallyneverhigherthantheratingassignedtothesovereigngovernmentofthecountryinwhichitresides.A)Adomesticborrowerwhowantstospeculateintheexchangeratemarkets.B)Aborrowerwithalong-termprojectthathaslargecashoutflowsatmaturity.C)Aborrowerwhohasalong-termprojectthatwillbefinancedwiththehomecurrency,butisexpectedtoproduceenoughforeigncurrencyprofitstorepaytheprincipalatmaturity.D)Japanesebanks.Chapter13CrosslistingA)Referstoafirmhavingitsequityshareslistedononeormoreforeignexchanges,inadditiontothehomecountrystockexchange.B)Isnotanoptionfornon-MNCs.C)IsonlyanoptionforMNCsD)BandCarebothcorrectA)Generallyexplainalargerportionofthevariabilityofforeignbondindexesthanforeignequityindexes.B)Generallyexplainalargerportionofthevariabilityofforeignequityindexesthanforeignbondindexes.C)Donotaffectthevariabilityofforeignequityindexesorforeignbondindexes.D)Affectallforeignstockmarketsequally.A)Isamechanismfortheavoidanceoftaxes,especiallycapitalgainstaxes,onsharesofforeignstocks.B)Arebearersecurities,notregisteredsecurities.C)isareceiptrepresentinganumberofforeignsharesthataredepositedinaU.S.bank.D)Noneoftheabovearetrue.A)Isthemarketthathasthelargestnumberofsharestradedthroughit.B)Isthemarketthathasthelargesttotalvalueofsharestradedthroughit.C)Isthemarketthathasthelargestnumberandvalueofsharestradedthroughit,liketheNYSEfortheU.S.D)Iswherethesaleofsecuritiesbycorporationstoinitialinvestorstakesplace.Across-borderM&A2.ImperfectfactormarketsdrivemuchFDI.Whichofthefollowingmarketshasth