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NEW QUESTION: 1
Which of the following is subject to translation exposure?
A. A Japanese subsidiary in the United States with U.S. dollar liabilities
B. A Spanish company with revenues in euros
C. A U.K. company that exports goods to the United States
D. A German company with a subsidiary in Spain
Answer: A

NEW QUESTION: 2

A. Option D
B. Option C
C. Option B
D. Option A
Answer: A,B

NEW QUESTION: 3
You are paying 1,00% per annum paid semi-annually and receiving 6-month LIBOR on a USD 10,000,000.00 interest rate swap with exactly two years to maturity. 6-month LIBOR for the next payment date is fixed today at 0.95%. How would you hedge the swap using FRAs?
How to hedge an IRS with a strip of FRAs?
A. sell a strip of 6x12, 12x18 and 18x24 FRAs
B. sell a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
C. buy a strip of 6x12, 12x18 and 18x24 FRAs
D. buy a strip of 0x6, 6x12, 12x18 and 18x24 FRAs
Answer: A

NEW QUESTION: 4
In a rollup hierarchy, three salespeople report to a manager and the manager reports to a director. The manager is also entitled to receive direct credit from one of the direct credit rules.
How should the rollup (Indirect) credit be allocated to the manager and the director in this scenario?
A. The manager receives rollup credit for direct reports and the director receives rollup credit only for the manager's direct credits.
B. The manager receives only direct credit (no rollup credit) and the director receives rollup credit for all salespeople under the manager, as well as for the manager's direct credits.
C. The manager receives rollup credit for all direct reports and the director receives rollup credit for all salespeople under the manager, as well as for the manager's direct credits.
D. The manager receives only direct credit (no rollup credit) and the director receives rollup credit only for the manager's direct credit.
E. There will be no rollup credits for the manager and the director because a manager cannot be configured to receive both rollup and direct credits.
Answer: C