A ________ Allows, but Does Not Require, a Firm to Buy

question 4

Multiple Choice

A ________ allows, but does not require, a firm to buy or sell a specified amount of foreign currency at a specified price on a specified date.

• A) forward swap
• B) currency option
• C) call option
• D) discount put

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Definitions:

Better Decisions

The outcome of a decision-making process that maximizes benefits or minimizes costs based on rational or informed choices.

Filtered

Processed or sifted through a system or tool to remove unwanted parts or to simplify.

Message

Refers to the content of communication, whether conveyed verbally, written, or through other mediums, intended to be received and understood by others.

Screens

In decision-making and information processing, screens are criteria or filters used to evaluate options or to screen out irrelevant data.