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Currency Call Options Allow the Purchaser to Lock in the Price

question 79

True/False

Currency call options allow the purchaser to lock in the price paid for a currency. Therefore, they are often used by MNCs to hedge foreign currency payables.


Definitions:

Sterile Workers

Individuals in some species of insects, such as ants and bees, that are unable to reproduce but perform other colony functions.

Share Genes

To share genes means to have genetic material in common, typically referring to the genetic similarities among relatives or species.

Social Insects

Insects that live in highly organized colonies or societies, displaying complex behaviors like division of labor and cooperative breeding.

Reproducing Members

Individuals within a population that are capable of producing offspring, contributing to the genetic diversity and continuation of the species.

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