In a derivative transaction, the term margin denotes to which one of the following?

Match the following.
List-I List-II
a. IRP 1. Law of one price
b. PPP 2. Nominal interest rate
c. IFE 3. Covered interest arbitrage
d. Call option 4. Right to purchase

Which of the following statements are true with regard to currency appreciation?

An Indian company is importing machine at a price of $ 5,00,000, payable after six month. The current exchange rate is Rs. 63 US $. The forward contract for six months is available @ Rs. 64 per US $. If the rate turns out to be Rs. 64.25 per US $, the net gain to the importer in case he has entered into contract will be

Which of the following statement is correct when it is given a home country and a foreign country, purchasing power parity suggests that