Which of the Following Strategies Could Result in a Lost

question 35

Multiple Choice

Which of the following strategies could result in a lost opportunity for capital gain if the home currency rises in value?

• A) buying a forward currency
• B) buying a currency option
• C) acquiring offsetting assets
• D) buying a currency future

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Definitions:

Predictor

A variable or factor that can be used to forecast future trends, behaviors, or outcomes based on current or historical data.

Behavioural Propensities

The natural inclinations or tendencies of individuals to behave in certain ways, influenced by both genetic and environmental factors.

Situations

Various circumstances or scenarios that can occur in a professional or personal context, often requiring specific responses.

Rational Approaches

Decision-making processes that are based on logical reasoning, systematic analysis, and factual evidence.