This document provides homework assignments from chapters 11-12 of a textbook. It asks 3 questions: 1) What political risk indicators to assess for Eastern European investments. 2) Why U.S. companies seek foreign stock listings and visibility with foreign investors. 3) The basic reason for eurodollar markets, factors in its growth, and how to calculate the cost of a eurocurrency loan priced at LIBOR plus 1% given the current and next period interbank rates.

1. Week 5 Homework Assignment
Chapter 11
1. What indicators would you look for in assessing the political riskiness of an
investment in Eastern Europe?
Chapter 12
1. Why are many U.S. MNCs seeking to improve their visibility with foreign investors, even
going so far as to list their shares on foreign stock exchanges?
2.
What is the basic reason for the existence of the eurodollar market? What factors have
accounted for its growth over time? Lecture
3. Suppose that the current 180-day interbank eurodollar rate is 9% (all rates are stated on an
annualized basis). If next period’s rate is 9.5%, what will a eurocurrency loan priced at
LIBOR plus 1% cost?