CSU BBA4301 unit IV assessment

Unit IV assessment

Question 1

18 out of 20 points

Partial Credit

In your own words, relate Interest Rate Parity to exchange rate movements; explain the relationship.

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Answer

Question 2

18 out of 20 points

Partial Credit

In your own words, contrast the absolute and relative versions of PPP.

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Question 3

18 out of 20 points

Partial Credit

In your own words, define a put option, its benefits and how it works.

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Question 4

18 out of 20 points

Partial Credit

In your own words, assess the factors that increase the value of a call option. Compare this to the factors that increase the value of a put option. Look at both option types from the investor’s perspective. What makes them more valuable?

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.

Question 5

17 out of 20 points

Partial Credit

In your own words, analyze the Law of One Price and the relationship to exchange rates.

Your response should be at least 200 words in length. All sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations.