​Kalons, Inc

question 17

Multiple Choice

​Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is not an appropriate hedging technique under these circumstances?

• A) ​Purchase Canadian dollars forward.
• B) ​Purchase Canadian dollar futures contracts.
• C) ​Purchase Canadian dollar put options.
• D) ​Purchase Canadian dollar call options.

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Definitions:

Product Line Depth

Refers to the variety of products offered within a single product line, differentiated by features, sizes, quality levels or other attributes.

Brand Repositioning

A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences.

Co-branding

A marketing partnership between two brands where they collaborate on a product or promotion to leverage each other's brand equity.

Brand Dilution

The weakening of a brand's strength or value, often resulting from overextension, inconsistent messaging, or failure to maintain quality standards.