Buckingham Inc

question 14

Multiple Choice

Buckingham Inc., a British corporation, owes Canuck Inc., a Canadian corporation, $1 million due in two months.How can Buckingham hedge the exchange risk?

• A)Sell pounds in the spot market.
• B)Buy pounds in the forward market.
• C)Sell Dollars in the spot market.
• D)Buy Dollars in the forward market.

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Definitions:

Attribution Theory

A theory focused on how people interpret and understand causes behind others' behavior and their own.

Dispositions

The inherent qualities of mind and character that influence an individual's behavior and attitudes.

Heredity

The transmission of physical or mental traits from parents to their offspring through genetics.

Biological Motives

Innate motivations driven by biological needs that are essential for survival, such as hunger, thirst, and the drive for self-preservation.