Simplify the Following Expression

question 178

Multiple Choice

Simplify the following expression.

• A) 10
• B) 490
• C) 63a²
• D) 10a
• E) 63a

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Definitions:

Spot Rate

Refers to the immediate exchange rate at which one currency can be exchanged for another without any delay.

Fair Value Hedge

A type of hedge that is used to mitigate the risk of changes in the fair value of an asset or liability or an identified portion of such an asset or liability.

Forward Contract

A financial derivative that represents a customized agreement to buy or sell an asset at an agreed-upon price on a specific future date.

Spot Rate

This is the current market price at which a particular currency can be bought or sold for immediate delivery.