Macomb Plc Is a UK Firm That Invoices Some of Its

question 14

Multiple Choice

Macomb plc is a UK firm that invoices some of its exports in Japanese yen. If it expects the yen to weaken, it could ____ to hedge the exchange rate risk on those exports.

• A) sell yen put options
• B) buy yen call options
• C) buy futures contracts on yen
• D) sell futures contracts on yen

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Definitions:

Size Constancy

A perceptual phenomenon where the perceived size of an object remains the same, despite changes in the size of the object's image on the retina.

Object Constancy

Correctly perceiving objects as staying the same in their size, shape, color, and lightness, across viewing conditions that yield different physical input to the eyes.

Wavelengths

The spacing between consecutive peaks of a wave, particularly in sound waves or electromagnetic waves.

Flipbook

A book with a series of pictures that vary gradually from one page to the next, so that when the pages are turned rapidly, the pictures appear to animate by simulating motion or some other change.