1

International Investments Final Exam (Optional, Take-home. Due on December 30, 2008 in class in hardcopy. A copy of

the solution will be provided on December 30, 2008.) Ref: Robert L. McDonald: Fundamentals of Derivatives Markets, Pearson Ed., 2008.

Note: If you have or will have accumulated 30 points out of essay and homework submission, you may choose to

take (or not to take) the exam. Otherwise, you have to take this take-home exam. You may earn up to 30 points

from this optional, take-home exam. Knowing how to solve these questions will help you pass the CFA exams,

too. We will have the reference text (i.e., McDonald) on reserve desk at commerce library as soon as possible.

Question 1.

Question 2.

Question 3.

2

Question 4.

Question 5.

3

Question 6.

Question 7.

Question 7A.

4

Question 7B.

Question 8.

5

Question 9.

Question 9A.

Question 9B.

6

Question 9C. Derive the following relationships:

Question 9D. Derive (9.7) as shown in the following context:

7

Hint:

Question 10.

8

Question 10A.

Question 11.

Question 12. Seven questions in series:

9

Question 13.

Question 13A.

10

Question 14.