Which of the Following Reflects a Hedge of Net Payables

question 37

Multiple Choice

Which of the following reflects a hedge of net payables on British pounds by a US firm?

• A) Purchase a currency put option in British pounds.
• B) Sell pounds forward.
• C) Sell a currency call option in British pounds.
• D) Borrow US dollars, convert them to pounds, and invest them in a British pound deposit.
• E) A and B

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Definitions:

Adolescent Girls

Female individuals who are in the stage of development between childhood and adulthood, typically between the ages of 10 and 19.

Adults

Individuals who have reached the age of maturity, typically being fully developed physically and mentally, and legally responsible for their actions.

Psychoactive Drugs

Substances that affect the mind, mood, or other mental processes, including medications for treating mental health conditions as well as recreational drugs.