英文版国际金融试题和答案汇编

PartⅠ.Decide whether each of the following statements is true or false (10%)每题1分，答错不扣分

1. If perfect markets existed, resources would be more mobile and could therefore be transferred to those countries more willing to pay a high price for them. ( T )

2. The forward contract can hedge future receivables or payables in foreign currencies to insulate the firm against exchange rate risk. ( T )

3. The primary objective of the multinational corporation is still the same primary objective of any firm, i.e.,

to maximize shareholder wealth. ( T )

4. A low inflation rate tends to increase imports and decrease exports, thereby decreasing the current account deficit, other things equal. ( F )

5. A capital account deficit reflects a net sale of the home currency in exchange for other currencies. This places upward pressure on that home currency’s value.

( F )

6. The theory of comparative advantage implies that countries should specialize in production, thereby relying

on other countries for some products. ( T )

7. Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula. ( F )

8．The total impact of transaction exposure is on the overall value of the firm. ( F )

9. A put option is an option to sell-by the buyer of the option-a stated number of units of the underlying instrument at a specified price per unit during a specified period. ( T )

10. Futures must be marked-to-market. Options are not. ( T )

PartⅡ:Cloze (20%)每题2分，答错不扣分

1. If inflation in a foreign country differs from inflation in the home country, the exchange rate will adjust to maintain equal( purchasing power ）

2. Speculators who expect a currency to ( appreciate ) could purchase currency futures contracts for that currency.

3. Covered interest arbitrage involves the short-term investment in a foreign currency that is covered by a ( forward contract ) to sell that currency when the investment matures.

4. （Appreciation/ Revalue ）of RMB reduces inflows since the foreign demand for our goods is reduced and foreign competition is increased.

5. ( PPP ) suggests a relationship between the inflation differential of two countries and the percentage change in the spot exchange rate over time.

6. IFE is based on nominal interest rate ( differentials ), which are influenced by expected inflation.

7. Transaction exposure is a subset of economic exposure. Economic exposure includes any form by which

( value ) will be affected.

the firm’s

8. The option writer is obligated to buy the underlying commodity at a stated price if a ( put option ) is exercised

9. There are three types of long-term international bonds. They are Global bonds , ( eurobonds ) and ( foreign bonds ).

10. Any good secondary market for finance instruments must have an efficient clearing system. Most Eurobonds are cleared through either ( Euroclear ) or Cedel.

PartⅢ:Questions and Calculations (60%)过程正确结果计算错误扣2分

1. Assume the following information:

A Bank

B Bank

Bid price of Canadian dollar $0.802 $0.796

Ask price of Canadian dollar $0.808 $0.800

Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had $1,000,000 to use. (5%)

ANSWER:

Yes! One could purchase New Zealand dollars at Y Bank for $.80 and sell them to X Bank for $.802. With $1 million available, 1.25 million New Zealand dollars could be purchased at Y Bank. These New Zealand dollars could then be sold to X Bank for $1,002,500, thereby generating a profit of $2,500.

2. Assume that the spot exchange rate of the British pound is $1.90. How will this spot rate adjust in two years if the United Kingdom experiences an inflation rate of 7 percent per year while the United States