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:

Subordinate

An individual who works under the direction of someone else within an organization, often in a lower position or rank.

Compound Sentence

A sentence type that combines two independent clauses (complete thoughts) using a conjunction or punctuation mark.

Indirect Method

The indirect method in communication involves leading up to the main point gradually, often used when delivering sensitive or potentially unwelcome information.

Embed

To insert an object, data, or file within another, making it an integral part of the latter.