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 Quantitative Easing 1, Quantitative Easing 2 and Quantitative Easing 3.