Which of the Following Is the Most Unlikely Strategy for a U.S

question 108

Multiple Choice

Which of the following is the most unlikely strategy for a U.S. firm that will be purchasing Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs) ?

• A) Purchase a call option on francs.
• B) Obtain a forward contract to purchase francs forward.
• C) Sell a futures contract on francs.
• D) All of these are appropriate strategies for the scenario described.

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Definitions:

Depth-of-processing Approach

A theory that suggests the depth at which information is thought about or processed affects how well it is remembered; deeper processing involves meaningful analysis and leads to better recall.

Interference Theory

The theory suggesting that the ability to remember information is affected by other learning, leading to memory interference and forgetting.

Stage Theory

A theory that development occurs in distinct phases or stages, each characterized by specific criteria.

Retrograde Amnesia

A condition involving the loss of memory for events that occurred before the onset of the amnesia.