The spot exchange rate between British Pounds (GBP) and Euros (EUR) is GBP 1.00 = EUR 1.17.

Which of the following reflects a strengthening of the GBP?

$105 is invested for a period of 3 years with continuously-compounded interest of 4% per annum. How much will it grow to?

Enter your answer to 2 decimal places. Do not enter the dollar sign "$".

You will receive $872 in 6 years time. If the discount rate is 13% per annum continuously compounded, what is the present value of this future cashflow?

Enter your answer with 2 decimal places. Do not enter the dollar sign "$".

A trader enters a short futures contract on an asset when the futures price (F) is $2,300 per unit. Each contract covers 100 units of the underlying asset. The contract is closed out when the futures price (F) is $2,120. Which of the following is true.

$525 is invested for a period of 4 years with continuously-compounded interest of 6% per annum. How much will it grow to?

Enter your answer to 2 decimal places. Do not enter the dollar sign "$".

The spot exchange rate between Australian dollars (AUD) and Euros (EUR) is  AUD 1.00 = EUR  0.62.

Which of the following reflects a weakening of the AUD?

Which of the following best describes the term "spot price"?

Which party initiates the trade of a futures contract?

In July this year, you entered an opening position of 45 short futures contracts on gold. Which of the following is FALSE:

The weather is expected to have an adverse impact on the volume of corn that will be harvested. In this case, a farmer should enter into short forward contracts to hedge the price risk. Required: True or False?