Questions from Multinational Business Finance

Q: What is the difference between a historic volatility and an implied volatility

What is the difference between a historic volatility and an implied volatility?

Q: The term carry trade is used quite frequently in the business press

The term carry trade is used quite frequently in the business press. What does it mean, and what conditions and expectations do investors need to hold to undertake carry trade transactions?

Q: Explain the meaning and probable significance for international business of the following

Explain the meaning and probable significance for international business of the following contract specifications: a. notional principal b. margin c. marked-to-market

Q: Many academics and professionals have tested the foreign exchange and interest rate

Many academics and professionals have tested the foreign exchange and interest rate markets to determine their efficiency. What have they concluded?

Q: How do you use foreign currency futures to speculate on the exchange

How do you use foreign currency futures to speculate on the exchange rate movements, and what role do long and short positions play in that speculation?

Q: What is real option analysis? How is it a better method

What is real option analysis? How is it a better method of making investment decisions than traditional capital budgeting analysis?

Q: How do foreign currency futures and foreign currency forwards compare?

How do foreign currency futures and foreign currency forwards compare?

Q: Define a put and call on the British pound sterling.

Define a put and call on the British pound sterling.

Q: Explain the difference between foreign currency options and futures and when either

Explain the difference between foreign currency options and futures and when either might be most appropriately used.

Q: You read that exchange-traded American call options on pounds sterling

You read that exchange-traded American call options on pounds sterling having a strike price of 1.460 and a maturity of next March are now quoted at 3.67. What does this mean if you are a potential bu...