Latest Questions & Answers

Q: Explain the pricing-to-market phenomenon. Answer

Explain the pricing-to-market phenomenon.

Q: Ashton Bishop is the debt manager for World Telephone, which needs

Ashton Bishop is the debt manager for World Telephone, which needs €3.33 billionEuro financing for its operations. Bishop is considering the choice between issuanceof debt denominated...

Q: It is Tuesday afternoon, February 14, 2012. Richard May

It is Tuesday afternoon, February 14, 2012. Richard May, Assistant Treasurer atAmerican Digital Graphics (ADG), sits in his office on the thirty-fourth floor of thebuilding that dominates Rockefeller...

Q: Discuss the pros and cons of a MNC having a centralized cash

Discuss the pros and cons of a MNC having a centralized cash manager handle allinvestment and borrowing for all affiliates of the MNC versus each affiliate havinga local manager who performs the cash...

Q: Explain the basic differences between the operation of a currency forward marketand

Explain the basic differences between the operation of a currency forward marketand a futures market.

Q: List the arguments (variables) of which an FX call or

List the arguments (variables) of which an FX call or put option model price is afunction. How do the call and put premiums change with respect to a change in thearguments?

Q: What is meant by the terminology that an option is in-,

What is meant by the terminology that an option is in-, at-, or out-of-the-money?

Q: Explain purchasing power parity, both the absolute and relative versions.

Explain purchasing power parity, both the absolute and relative versions. Whatcauses deviations from purchasing power parity?

Q: What is the major difference in the obligation of one with a

What is the major difference in the obligation of one with a long position in afutures (or forward) contract in comparison to an options contract?

Q: How can the FX futures market be used for price discovery?

How can the FX futures market be used for price discovery?