CFA-Level-I Exam Question 441

Suppose a U.S. firm buys good from Thailand with a payment of Thai Baht 2,000,000 due in 90 days.
The current price of the baht is U.S. 0.02532. The U.S. firm wishes to hedge its currency risk by entering into a 90 day forward contract with a bank at a price of $0.02545. In 90 days the spot rate for Thai baht is
$ 0.02528.
  • CFA-Level-I Exam Question 442

    A father will have to make the first payment for his son's college tuition of $100,000 in 8 years time.
    How much does he need to invest now to be able to pay this amount if the interest earns 10 % compounded annually?
  • CFA-Level-I Exam Question 443

    As a portfolio manager, you are comparing the yields on investment grade 10-year corporate bonds and the 10-year on-the-run Treasury. You notice that a bond issued by Ink, Inc. has a yield of 7.8% while the Treasury yields 6.02%. Calculate the yield ratio.
  • CFA-Level-I Exam Question 444

    Which one of the following is a way that a company can increase its intensity of asset utilization?
  • CFA-Level-I Exam Question 445

    Operating income from discontinued operations, and any gains or losses from their sale are