Which of the Following Is the Most Unlikely Strategy for a UK

question 54

Multiple Choice

Which of the following is the most unlikely strategy for a UK firm that will be purchasing Swiss francs in the future and desires to avoid exchange rate risk (assume the firm has no offsetting position in francs) ?

• A) Purchase a call option on francs.
• B) Obtain a forward contract to purchase francs forward.
• C) Sell a futures contract on francs.
• D) All of the above are appropriate strategies for the scenario described.

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Definitions:

Unintentional Message

An unintentional message is a communication that conveys a meaning or sentiment not deliberately intended by the sender, often leading to misunderstandings.

Gesture

A movement of the body, especially the hands or head, used to express an idea or feeling or to communicate nonverbally.

Nonverbal Communication

The transmission of messages or signals through a non-linguistic means, such as body language, facial expressions, and gestures.

Facial Expressions

The movements or positions of the face that convey emotional states or reactions to situations.