Kalons Ltd

question 75

Multiple Choice

Kalons ltd. is a UK-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is not an appropriate hedging technique under these circumstances?

• A) Purchase Canadian dollars forward
• B) Purchase Canadian dollar futures contracts
• C) Purchase Canadian dollar put options
• D) Purchase Canadian dollar call options

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Definitions:

Hourly Wage

The amount of money paid to an employee for each hour worked, often set by legal minimum wage laws or by agreement between employer and employee.

Fringe Benefits

Fringe Benefits are additional benefits supplementing an employee's salary, such as health insurance, paid vacations, and retirement plans.

Winner-Take-All Markets

Markets in which the top performers or companies receive a disproportionately large share of the rewards, and the remaining competitors are left with very little.

Hourly Wage

The amount of money paid for each hour of work.