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Ahswer All Questions Time Allocated 2 hours): 1. If a U.S. 90 days, it could: (1 point) irm desires to avoid the risk from exchange rate fluctuations, and it is eiving 100,000 n obtain a 90-day forward purchase contract on euros. b. a. obtain a 90-day forward sale contract on euros. purchase euros 90 days from now at the spot rate. d. c. sell euros 90 days from now at the spot rate. 2. Assume the Canadian dollar is equal to $.88 and the Peruvian Sol is equal to $.35. The value of the Peruvian Sol in Canadian dollars is: (1 point) about .3621 Canadian dollars. a. b. about .3977 Canadian dollars. about 2.36 Canadian dollars. c. d. about 2.51 Canadian dollars. 3. A Japanese yen is worth $.0080, and a Fijian dollar (FS) is worth S.5900. What is the value of the yen in Fijian dollars (i.e, how many Fijian dollars do you need to buy a yen)? a. 73.75. b. 125 c. 1.69 d. 0.0135 e. (1 point) none of the above 4. Your company expects to receive 5,000,000 Japanese yen 60 days from now. You decide to hedge your position by selling Japanese yen forward. The current spot rate of the yen is $.0089, while the forward rate is $.0095. You expect the spot rate in 60 days to be $.0090. How many dollars will you receive for the 5,000,000 yen 60 days from now if you sell yen forward? (2 points) a.$44,500 b.$45,000 .$52,600 d.$47,500 5. Lending Rate Borrowing Rate Dollars New Zealand dollar (NZS) 7.10% 6.80% 7.50% 7.25% Baylor Bank has the capacity to borrow either NZS10 million or S5 million, If Baylor Bank's forecast is correct, what will its dollar profit be any of its existing consumer deposits to capitalize on its expectations; assume 360 days/year)? (4 points) from speculation over the five-day period (assuming it does not use

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