​Macomb Corporation Is a U

question 50

Multiple Choice

​Macomb Corporation is a U.S. firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could ____ to hedge the exchange rate risk on those exports.

• A) ​sell yen put options
• B) ​buy yen call options
• C) ​buy futures contracts on yen
• D) ​sell futures contracts on yen

---

Definitions:

Floating Lien

A security interest or claim against assets that are not fixed but rather change in quantity and value over time, such as inventory or accounts receivable.

Priority

The established order of importance or precedence, often used in contexts where resources are limited or decisions must be made based on urgency.

Equity of Redemption

A mortgagor’s right to pay off the mortgage in full, including interest.

Mortgagor

A borrower in a mortgage agreement who uses property as security for a loan.