You Are Hoarse from Explaining to Your Supervisor That the Cost

question 1

Multiple Choice

You are hoarse from explaining to your supervisor that the cost, if any, of hedging exchange-rate risk can be thought of as an insurance premium to avoid surprises.What is the cost of hedging a €2 million commitment if the spot rate is €1.6/$, the forward rate is €1.55/$, and the expected spot rate at the end of the hedge is €1.6/$?

• A)$0
• B)$25,000
• C)$40,323
• D)$68,966

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Definitions:

Low Self-Esteem

A condition where an individual perceives themselves as inadequate, unlovable, or incompetent.

High Status Occupations

Jobs or professions that are regarded with high esteem and typically associated with higher levels of income, authority, or influence.

Adverse Job Conditions

Unfavorable or harmful conditions in a workplace that can affect employee well-being, such as excessive workload, unsafe environment, or lack of recognition.

Personality

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