What Conclusions Can You Make About the Degree of International

question 34

Multiple Choice

What conclusions can you make about the degree of international integration between the U.S.and Argentine markets?

• A)The markets are integrated since the PV of investing dollars today and converting them with a forward contract is significantly less than converting into Pesos today and investing those Pesos for six months.
• B)The markets are integrated since the PV of investing dollars today and converting them with a forward contract is significantly greater than converting into Pesos today and investing those Pesos for six months.
• C)The markets are integrated since the PV of investing dollars today and converting them with a forward contract is approximately equal to converting into Pesos today and investing those Pesos for six months.
• D)The markets are not integrated since the PV of investing dollars today and converting them with a forward contract is greater than converting into Pesos today and investing those Pesos for six months.

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Definitions:

Cutting Out

The act of removing or excising a piece of material or a part of a structure.

Excision

A surgical procedure involving the removal of tissue, an organ, or other body part.

Combining Form

A combining form is a form of a word that only appears as part of another word, usually used in the formation of medical and scientific terms.

Suffix

A set of letters added to the end of a word to alter its meaning or specify its grammatical function.