You have just purchased a large number of Italian bonds, and you reside in the United States. The variability in earnings that you might experience as the relationship between the euro and the U.S. dollar fluctuates is called
A) currency volatility risk.
B) international risk.
C) exchange rate risk.
D) fluctuation risk.
E) none of the above.
Answer: C
You might also like to view...
A segment is less attractive if it ________
A) is difficult for new entrants to enter B) is substantial C) is actionable D) already contains many strong and aggressive competitors E) contains weak suppliers
At 10:45 a.m., Ashley placed a stop-loss order to sell 200 shares of Alpha stock at $43 a share. At 2:15 p.m., the price of Alpha fell to $42.90 and then rose to $43.40 a share by the end of the trading day
Ashley order was executed that day. Ashley would have received a price A) of $42.90 a share for her stock since her order was already recorded in the specialist's book. B) of $43.40 a share for her stock since that was the closing price on the day of execution. C) between $42.90 and $43.40 a share depending upon when her trade executed. D) equal to the average prices paid by the specialist during that trading day.