To Hedge a Receivables Position with a Currency Option Hedge

question 63

True/False

To hedge a receivables position with a currency option hedge, an MNC would buy a put option.

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Definitions:

Conscious Thought

The awareness and deliberate use of one's mind to consider ideas, make decisions, and form judgments.

Innate Factors

Natural, inherent elements or conditions that influence an individual's development or characteristics from birth.

Mood

A temporary state of mind or feeling that can influence an individual's perception and behavior.

Observational Learning

A type of learning that occurs as a function of observing, retaining and replicating behaviors, attitudes, or emotional expressions of others.