Which of the following is(are)

correct in regards to the operating exposure’s intervals of adjustment and

responses:

A dealer buys EUR5,000,000 forward

for delivery in, two months at EUR0.5556/USD and simultaneously sells EUR5,000,000 forward

for delivery in three months at EUR0.5545/USD. This foreign exchange

transaction is called:

Recently the New Zealand dollar

suffered an unexpected appreciation in value. Which of the following actions are

being considered by Snowball Pty. Ltd, a purely domestic New Zealander

furniture manufacturer and retailer, would be considered a highly unlikely

response to the depreciation of the pound?

There are various determinants of

the foreign exchange rate. Which of the approaches postulates that the FX rate

is determined by the demand and supply of different types of financial assets?

An example of economies of scale as

an advantage in financing strategy include: