Hi!

I would appreciate your help with these questions. True/False

1. The cost stemming from hedging against foreign exchange risk are lower when currency forwards instead of currency options are used for this purpose.

2. A call option to buy Singapore dollars at strike price of 10 South African rands is equal to a put option to sell 10 South African rands at strike price of 0.1 Singapore dollars, given that the options have the same maturity.

Thank you!

Still waiting for help from you guys

False and False unless there are other factors that you can share. Seems like an obvious troll.

Thank you!

Actually, I'm not trolling. There are no other factors.

Howabout these? True or False?

1. A three-month futures price must always be higher than the current spot price of the underlying asset.

2. Based on the yield spreads, the corporate bond market seems to underestimate default probabilities, since the so-called risk-neutral default probabilities are generally much lower that the real world default probabilities.

3. Back-testing indicates how well Value-at-Risk (VaR) estimates have performed in the past(this is True). For example, if the back testing shows that 10-day 95% VaR has been exceeded in 25 days during the last two years, the VaR estimate can be considered relatively reliable.

Keltamustat 

Thank you! Actually, I'm not trolling. There are no other factors. Howabout these? True or False? 1. A three-month futures price must always be higher than the current spot price of the underlying asset. 2. Based on the yield spreads, the corporate bond market seems to underestimate default probabilities, since the so-called risk-neutral default probabilities are generally much lower that the real world default probabilities. 3. Back-testing indicates how well Value-at-Risk (VaR) estimates have performed in the past(this is True). For example, if the back testing shows that 10-day 95% VaR has been exceeded in 25 days during the last two years, the VaR estimate can be considered relatively reliable.

Would be amazing if someone has an opinion
ATM I think

1) True
2) False
3) I'm not sure what is the right formula to use

Thank you

Keltamustat 

Would be amazing if someone has an opinion ATM I think 1) True 2) False 3) I'm not sure what is the right formula to use Thank you

I don't understand what you are trying to achieve with having others attempting to answer the questions to your own exam.

If you provided some more background perhaps it would make it easy for others to try to help.

xplorer 

I don't understand what you are trying to achieve with having others attempting to answer the questions to your own exam. If you provided some more background perhaps it would make it easy for others to try to help.

I'm sorry but I dont understand you. I'm just asking help. Xplorer, nice to have answers like that. Have a nice weekend sir!