a) Define the following concepts in the international financial management.
i) Covered interest arbitrage
ii) Foreign exchange swap
iii) Forward discount
iv) Future contracts
v) Interest spread
vi) Optimal Domestic Portfolio
vii) Portfolio diversification
b) Elaborate the factors that led to the Subprime crisis of 2008/2009.
c) Discuss the effectiveness of QE1, QE2 and QE3.