1. Which one of the following will increase the investment cash flow?
purchase of an investment
issuing new shares of stock
repaying a bond issue
sale of a building
payment of interest on a bond issue
2. How do courts treat an engagement ring, when the two parties break off an engagement? who owns the ring?
3. A U.S. based company have to pay 1 million Argentinean Pesos (ARS) in five months. Since the ARS is very volatile, the company decides to enter into a FX swap. Set the swap. The interest rate in Argentina is 26.5% per year, the ARS spot price is 0.0568 [USD/ARS] and the interest rate in the U.S. is 1.23% per year.