Hedgers Should Buy Puts If They Are Hedging an Expected

question 33

True/False

Hedgers should buy puts if they are hedging an expected inflow of foreign currency.

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Definitions:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, representing a five-tier model of human needs, depicted as hierarchical levels within a pyramid.

Esteem Needs

According to Maslow's hierarchy of needs, these are the higher-level needs related to self-esteem, self-respect, and the respect of others.

Higher-Order Needs

Refers to personal growth and fulfillment needs in Maslow's hierarchy, including esteem and self-actualization needs.

Clayton Alderfer

An American psychologist known for developing ERG theory, a model that categorizes human needs into three categories: Existence, Relatedness, and Growth.