Question Details

Eurobonds are certificates representing bundles of stock



1. When the foreign exchange market opens in the UK each morning, the opening exchange rate quotations will be based on the:
a. closing prices in the U.S. during the previous day.
b. closing prices in Canada during the previous day.
c. prevailing prices in locations where the foreign exchange markets have been open.
d. officially set by central banks before the U.S. market opens.

 2. Under the gold standard, each currency was convertible into gold at a specified rate, and the exchange rate between two currencies was determined by their relative convertibility rates per ounce of gold.
a. true.	
b. false.

 3. The strike price is also known as the premium price.
a. true.	
b. false.

 4. Eurobonds are certificates representing bundles of stock.
a. true.	
b. false.

 5. A share of the ADR of a Dutch firm represents one share of that firm's stock that is traded on a Dutch stock exchange. The share price of the firm was 15 euros when the Dutch market closed. As the U.S. market opens, the euro is worth $1.10. Thus, the price of the ADR should be _____.
a. $13.64
b. $15.00
c. $16.50
d. 16.50 uros
e. none of the above



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