Exchange-Rate Risk

question 35

Multiple Choice

Exchange-rate risk

• A) results from changes in the exchange rates between the currency of the investor and the country in which the investment is made.
• B) can be hedged by using a forward or futures contract in foreign exchange.
• C) cannot be eliminated.
• D) results from changes in the exchange rates between the currency of the investor and the country in which the investment is made and cannot be eliminated.
• E) results from changes in the exchange rates between the currency of the investor and the country in which the investment is made and can be hedged by using a forward or futures contract in foreign exchange.

Know the emergency response to life-threatening allergic reactions.

Learn about the role of specific blood components in immune response and disease defense.

Understand the clinical significance of primary diagnostic markers for metabolic and infectious diseases.

Learn the importance of patient observation and advice in managing allergies.

---

Definitions:

Yield To Maturity

The total return anticipated on a bond if it is held until its maturity date, including all interest payments and the repayment of principal.

Bond's Duration

Bond's duration measures the sensitivity of the bond's price to changes in interest rates, often indicating the average time it takes for a bond to repay its true cost.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, representing the risk of price change.

Bond Swap

The process of selling one bond and purchasing another bond with different characteristics, often for tax optimization or to improve returns.