If You Want to Lock in the Price Today for a Sale

question 281

Multiple Choice

If you want to lock in the price today for a sale which you will make sometime in the future, you should engage in a:

• A) Swap contract.
• B) Cross-hedge.
• C) Interest rate floor.
• D) Long call option.
• E) Forward contract.

Comprehend the reasons and methods firms use to raise capital.

Recognize the advantages and disadvantages of different business forms.

Understand the significance of cash flows and accounting results in financial decision-making.

Grasp the tax implications of different corporate structures.

---

Definitions:

Systematic Desensitization

A behavioral therapy technique used to reduce irrational fears and anxiety through gradual exposure to the feared object or situation paired with relaxation exercises.

Client-centred Therapy

A psychotherapeutic approach developed by Carl Rogers that emphasizes providing a supportive emotional environment where clients can lead their own process of healing.

Group Therapy

A form of psychotherapy involving one or more therapists working with several people at the same time, often focused on a particular issue.

Eating Disorder

A mental disorder defined by abnormal or disturbed eating habits that negatively affect a person's health or well-being.