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US-based company that is exporting car components into Australia is about to complete an export order and expects to receive payment of AUD 500 000 in three months' time. The spot exchange rate is USD/AUD 1.5380. In conducting an analysis of its foreign exchange risk exposure, the company considers the impact of the following exchange rate changes

9. Aecording to the random walk hypothesis, prico(o) a. over time are independent of one snother. d. changes today are dependent on b. changes over time afe independeet. yestendsy' in price changes. c. Ievels over time are independent. 10. If you purchase a \\( \\$ 100,000 \\) interest-nate futures contract for 105 , and the price of the Treasury securities on the expiration date is 108 (a) your profit is \\( \\$ 3000 \\). (d) your loss is 58000 . (b) your loss is \\( \\$ 3000 \\). (e) your profit is \\( \\$ 5000 \\). (c) your profit is 58000 . 11. When a government influences factors, such as inflation, interest nates, or income, in order to affect ctarrency's value, this is an example of a. direct intervention. c. a freely floating system. b. indirect intervention. d. a pegsed system. 12. are not foreign exchange derivatives. a. Forward contracts d. Currency options b. Currency futures contracts e. All of the above are foreign exchange derivatives. c. Currency swaps 13. If foreign interest rates increase. A: the demand for domestic currency falls, causing it to appreciate B: the demand for domestic currency rises, eausing it to appreciate C. the demand for domestic currency rises, causing it to deprociate D: the demand for domestic currency falls, causing it to depreciate 14. Which of the following represents a source of foreign exchange risk exposure? A: economic exposure C: translation exposure B: transaction exposure D: All of the above 15. A US-bused company that is exporting car components into Australia is about to complete an export order and expects to receive payment of AUD 500000 in three months' time. The spot exchange rate is USD/AUD 1.5380. In conducting an analysis of its foreign exchange risk exposure, the company eonsiders the impact of the following exchange rate changes

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