1. How would you use financial instruments, such as forward, futures, option, and swap contracts, to hedge exchange rate risk?
2. What is the relationships among spot exchange rates, forward exchange rates, interest rates, and inflation rates?
3. Find the present value of $1000 due at the end of 10 years at 12% per annum assuming quarterly ccompounding
4. Why do you think that the financial markets are inherently unstable, that is what took a generation to build, was destroyed in a matte of a few weeks?