30. In a currency swap two parties agree to exchange flows of different bonds during a specified period of time. 在货币套换中,双方同意在一个约定的时间内交接不同的债券
31. If a currency is at a forward premium by as much as its interest rate is lower than the interest rate in the other country, covered interest parity holds.(T)如果一货币的远期升水跟利率都比其它国家低,那么套补利率平价持续(F,I都小于外国水平，抵补套汇机制将继续，CD=0，)
32. A country with an interest rate that is lower than the corresponding rate in the domestic country will have a forward premium on its currency.(T) 如果一个国家的利率比国内折合利率低,那么这个国家会出现出现货币的远期升水
33. Covered interest parity is rarely found to hold empirically.利率平价很少会持续出现
34. If Canada and Britain have 90 day forward exchange rate values for their currencies that are above their current spot exchange rate values, then Canadian and British interest rates are relatively high.如果加拿大与英国有９０天远期外汇利率值,这个外汇利率值高于其即时外汇利率值的话,那么加拿大与英国的利息相对比较高.（f-e>0,因为，f-e=两国利率差>0,所以加拿大的利息比英国的利息低）
35. Studies have shown that actual uncovered differentials are random and on average equal to zero. 研究表明, 非抵补利差是随机的,并且平均值在０附近
Essay Questions
Suppose that the U.S. dollar-pound sterling spot exchange rate equals $1.60/￡, while the 360-day forward rate is $1.64/￡. The yield on a one-year U.S. Treasury bill is 9% and on a one-year U.K. Treasury bill the yield is 8%. Calculate the covered interest differential in favor of London. On the basis of this result, which country would you expect to face capital inflows and which to face capital outflows? 36。
cd=0.017
(过程：cd=(1+8%)*1.64/1.60-(1+9%)=1.107-1.09=0.017)
Consider the case of a U.S. investor holding dollars and deciding whether to invest in Japanese Treasury bills or in U.S. Treasury bills. Assume that the investor wants to end up holding dollars. What THREE methods are available to this investor to turn present dollars into future dollars? In your answer present an equation that shows the return per dollar invested under each method. Which of these methods is the riskiest and why? 37岁。
三种方式：a.CIP:(1+iJP)f/e, b.UIP:(1+iJP)eex/e 买美圆资产,获得收益1+ius
总结：第二种风险最大，原因在于no covering （英文解释：
The three methods, each described by equation, per $1 invested, are: 1.) Covered international investment; covered return = (1 + iJP) * (f / e)
2.) Uncovered international investment; expected uncovered return = (1 + iJP) * (eex / e) 3.) Invest directly in U.S. Treasury bills; domestic return = (1 + iUS)
The riskiest is the second option because the investor is exposed to exchange rate risk and is not covered.）
1. Suppose that the dollar-yen spot exchange rate is $0.05/￥ and the 90-day forward exchange rate is $0.06/￥. Assuming that covered interest parity holds, are Japanese interest rates higher or lower than U.S. interest rates? Explain why. （CD=0，F=Ius-Ijp,因为F=f-e=0.06-0.05=0.01>0,所以，Ius-Ijp>0, Ius>Ijp）
美国利率大于日本。
（英文解释：0 = (1 + iJP) * .06 / .05 - (1 + iUS)
(1 + iJP) * .06 / .05 = (1 + iUS)
.06 / .05 = (1 + iUS) / (1 + iJP) For this equation to hold, the numerator has to be greater than the denominator, thus the U.S. interest rates must be higher than Japan?s.这个方程的分子已经比分母,因此,美国
的利率要高于日本
）
2. The current spot exchange rate is $1.14/Euro. The current 90-day forward exchange rate is $1.11/Euro. How could a U.S firm, who must repay a 40 million Euro loan in 90 days, use a forward exchange contract to hedge its risk exposure?（美元90天后将升值，利用远期外汇合同买进40*1.11=44.4美元，做套期保值，90天后卖出美元）
利用远期欧元合同，锁定未来支付欧元需要的成本44,4million USD.（英文解释：Enter into a forward contract to buy 40 million euros in 90 days.
The forward rate is $1.11/euro, therefore the company must deliver $44.4 million in 90 days. This way the company has an asset position in euro through the forward contract that covers its liability of the 40 million euro loan.