1,Currency Options. Differentiate between a currency call option and a currency put option. Complete this sentence: A currency call option provides the _____ to ______a specified currency at a specified price within a specified period of time. A currency put option provides the _____to _____a specified currency for a specified price within a specified period of time.

		Right, sell, right, purchase
		Obligation, purchase, obligation, sell
		Right, purchase, right, sell
		Obligation, sell, obligation, purchase

2,Hedging With Currency Derivatives. Assume that U.S. firms that have no other foreign transactions anticipate the forward purchase transaction. What are possible ways to hedge the transactions according to the following scenario? Yale Corp. has a subsidiary in Australia that will be remitting funds to the U.S. parent.

		Forward sale, sell futures, purchase puts
		Forward purchase, buy futures, purchase calls
		Forward purchase, sell futures, purchase puts
		Forward purchase, buy futures, purchase puts

3,Hedging With Currency Derivatives. Assume that U.S. firms that have no other foreign transactions anticipate the forward purchase transaction. What are possible ways to hedge the transactions according to the following scenario? Georgetown Co. plans to purchase Japanese goods denominated in yen.

		Forward purchase, sell futures, purchase puts
		Forward sale, sell futures, purchase puts
		Forward purchase, buy futures, purchase puts
		Forward purchase, buy futures, purchase calls

4,Currency Call Option Premiums. List the factors that affect currency call option premiums and briefly explain the relationship that exists for each. Do you think an at-the-money call option in euros has a higher or lower premium than an at-the-money call option in Mexican pesos (assuming the expiration date and the total dollar value represented by each option are the same for both options)? The factors are listed: The higher the existing spot rate relative to the strike price, the _______ is the call option value, other things equal. The longer the period prior to the expiration date, the ________ is the call option value, other things equal. The greater the variability of the currency, the greater is the call option value, other things equal. The at-the-money call option in euros should have a _____ premium because the euro should have less volatility than the peso (assuming that the expected volatility of the euro is lower than that of the peso).

		Greater, greater, lower
		Greater, greater, higher
		Lesser, greater, lower
		Lesser, greater, higher

5,Speculating With Currency Options. When should a speculator purchase a call option on Australian dollars? When should a speculator purchase a put option on Australian dollars? Complete each sentence: Speculators should purchase a call option on Australian dollars if they expect the Australian dollar value to ________ substantially over the period specified by the option contract. Speculators should purchase a put option on Australian dollars if they expect the Australian dollar value to ________ substantially over the period specified by the option contract.

		Appreciate, appreciate
		Depreciate, appreciate
		Appreciate, depreciate
		Depreciate, depreciate

6, Hedging With Currency Options. When would a U.S. firm consider purchasing a call option on euros for hedging? When would a U.S. firm consider purchasing a put option on euros for hedging? Complete each sentence: A call option can hedge a firm’s future _______ denomin-ated in euros. It effectively locks in the maximum price to be paid for euros. A put option on euros can hedge a U.S. firm’s future ________ denominated in euros. It effectively locks in the minimum price at which it can exchange euros received.

		Equity, net profit
		Net profit, equity
		Receivables, payables
		Payables, receivables

7, Speculating With Currency Put Options. Alice Duever purchased a put option on British pounds for $.04 per unit. The strike price was $1.80, and the spot rate at the time the pound option was exercised was $1.59. Assume there are 31,250 units in a British pound option. What was Alice’s net profit on the option?

		–$5,312.50
		$5,312.50
		$497.70
		–$497.70

 

 

 

 

 

8, Selling Currency Call Options. Mike Suerth sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume Mike did not obtain Canadian dollars until the option was exercised. Also assume that there are 50,000 units in a Canadian dollar option. What was Mike’s net profit on the call option?

		$13,450.50
		–$13,450.50
		$2,500
		–$2,500

9, Speculating With Currency Call Options. Randy Rudecki purchased a call option on British pounds for $.02 per unit. The strike price was $1.45, and the spot rate at the time the option was exercised was $1.46. Assume there are 31,250 units in a British pound option. What was Randy’s net profit on this option?

		–$42.75
		$312.50
		–$312.50
		$42.75

 

10, Selling Currency Put Options. Brian Tull sold a put option on Canadian dollars for $.03 per unit. The strike price was $.75, and the spot rate at the time the option was exercised was $.72. Assume Brian immediately sold off the Canadian dollars received when the option was exercised. Also assume that there are 50,000 units in a Canadian dollar option. What was Brian’s net profit on the put option?

		–$412
		–$350
		$0
		$350

ssignment 1: Research Topics with Explanation

Due Week 2 and worth 100 points

Read through the list of research topics (located in the Appendix) on which to write a research paper. Select three (3) topics that interest you most and identify two (2) credible sources for each topic. Note: This is one (1) of several parts that will build toward a final draft of your persuasive writing research paper.

Write a one to two (1-2) page paper in which you:

1. Explain the reason for selecting topic one (1), identify the audience, and provide a preliminary thesis statement.

2. Explain the reason for selecting topic two (2), identify the audience, and provide a preliminary thesis statement.

3. Explain the reason for selecting topic three (3), identify the audience, and provide a preliminary thesis statement.

4. Identify and document six (6) credible sources (two (2) for each topic) that you would expect to use. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting guidelines:

 Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.

 Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.

Some European countries have been experiencing a string of protests from immigrants. These immigrants sought to express their dissatisfaction with their current employment status and lack of consideration from employers when applying for jobs for which they met the required qualifications. This has prompted employers to reconsider their past and current practices in the management of workforce diversity and to reduce the economic and cultural differences that exist in these types of egalitarian societal organizational environments. The main problem derives apparently from a wide range of discriminatory employment practices inherent in European companies. These practices would set the tone for possible lawsuits from immigrants rejected as potential employment candidates and opportunities.

Consider this example. Ewe Kikuyu graduated from a well-known European university with a degree in Architecture in 2007 and spent a full year sending out her Curriculum Vitae. Ewe is the daughter of South African immigrants and did not receive a single chance, call, or interview. At one point, Ewe attended an architecture job fair, where she witnessed one of the company recruiters to whom she had submitted her CV glance at her and immediately dump her CV into a waste receptacle. Ewe commented that, throughout her entire life of struggles, hard work, and commitment to achieve a good education, she never thought that her name, race, and nationality would become an issue in obtaining a decent job for which she would be qualified.

Some of the major obstacles for managing diversity in European countries derive from the legal system, inherent employment practices, lack of accountability and existing laws, and regulations. Some of the requirements currently in place in some European countries when candidates are seeking employment opportunities are to reflect on and submit their CV information related to their nationality, religion, race, marital status, and a picture. These employment requirements and practices have set the tone for many potential employment discrimination acts. As a result of these discriminatory acts, complaints, and lawsuits, some European countries and employers have been mandated to institute and comply with some strict laws and regulations, and to introduce and manage proactive solutions to attract, recruit, select, and retain a qualified, diverse workforce to meet the supply and demand of a globalized, changing workforce.

Consider this: Some European multinationals started to send managers to high schools in order to train students in writing résumés and provided proper etiquette and training tools to successfully achieve a job interview and enhance their employability. In addition, some of these companies initiated a national campaign to work with colleges and universities to recruit disadvantaged or minority students for potential internship or /full-time opportunities. Some major multinationals jumped on the bandwagon and implemented strict guidelines to eliminate personal and biased information from the candidates’ professional profile (CV), such as any racial or ethnic data, before forwarding them to recruiters or head hunters. These new practices would make it more difficult for any prospective employer to discriminate on the basis of nationality, religion, race, or ethnic background.