Questions from Corporate Finance

Q: Define each of the following types of foreign exchange transactions:

Define each of the following types of foreign exchange transactions: a. Spot. b. Outright forward. c. Forward-forward swap.

Q: With reference to foreign exchange turnover in 2010: a.

With reference to foreign exchange turnover in 2010: a. Rank the relative size of spot, forwards, and swaps as of 2010. b. Rank the five most important geographic locations for foreign exchange turno...

Q: Explain the meaning of “cross-rate consistency” as used

Explain the meaning of “cross-rate consistency” as used by MNEs. How do MNEs use a check of cross-rate consistency in practice?

Q: With reference to interbank quotations, what is the difference between American

With reference to interbank quotations, what is the difference between American terms and European terms?

Q: Define and give an example of the following: a.

Define and give an example of the following: a. Direct quote between the U.S. dollar and the Mexican peso, where the United States is designated as the home country. b. Indirect quote between the Japa...

Q: Define the following terms: • Foreign exchange market •

Define the following terms: • Foreign exchange market • Foreign exchange transaction •Foreign exchange