Name the bone marked by the red dot.

We now know that the North Vietnamese attacks on Khe Sanh were

The duration of a bond increases the [answer1] the term to maturity and the [answer2] the coupon rate.

If the net inflow of one currency is about the same amount as a net outflow in another currency, the firm will benefit if these two currencies are positively correlated because the transaction exposure is offset.

Assume the bid rate of an Australian dollar is $.60 while the ask rate is $.61 at Bank Q. Assume the bid rate of an Australian dollar is $.62 while the ask rate is $.625 at Bank V. Given this information, what would be your gain if you use $1,000,000 and execute locational arbitrage? That is, how much will you end up with over and above the $1,000,000 you started with?

When the real cost of hedging is positive, this implies that hedging was more favorable than not hedging.

Wisconsin Inc. conducts business in Zambia. Years ago, Wisconsin established a subsidiary in Zambia that has consistently generated very large profits denominated in Zambian kwacha. Wisconsin wishes to restructure its operations to reduce economic exposure. Which of the following is not a feasible way of accomplishing this?

To force the value of the pound to appreciate against the dollar, the Federal Reserve should:

FAI Corporation will be receiving 300,000 Canadian dollars (C$) in 90 days. Currently, a 90-day call option with an exercise price of $0.76 and a premium of $0.01 is available. Also, a 90-day put option with an exercise price of $0.74 and a premium of $0.01 is available. FAI plans to purchase options to hedge its receivable position. Assuming that the spot rate in 90 days is $0.71, what is the net amount received from the currency option hedge?

It has been argued that the exchange rate can be used as a policy tool. Assume that the U.S. government would like to reduce inflation. Which of the following is an appropriate action given this scenario?