A USExport Company Scheduled to Receive 1 Million Pounds Six Months

question 51

Multiple Choice

A U.S.export company scheduled to receive 1 million pounds six months from today can hedge its foreign exchange risk by:

• A) Buying today 1 million pounds in the forward market for delivery in six months
• B) Buying 1 million pounds in the spot market for delivery in six months
• C) Selling 1 million pounds in the spot market for delivery in six months
• D) Selling today 1 million pounds in the forward market for delivery in six months

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Definitions:

Type Of Amphetamine

A stimulant drug that affects the central nervous system, used for treating attention deficit hyperactivity disorder (ADHD) and narcolepsy, and sometimes used recreationally.

Snorted

To forcibly breathe in through the nose, often to express disapproval or to ingest substances.

Recreational Drug

Substances used primarily for leisure or enjoyment rather than for medical purposes, often leading to altered states of consciousness.

North America

A continent located in the Earth's northern hemisphere and almost entirely within the western hemisphere, comprising countries like the United States, Canada, and Mexico.