Inmar Corporation Is a Mail-Order Company That Imports a Lot

question 57

Multiple Choice

Inmar Corporation is a mail-order company that imports a lot of its products from Switzerland. The firm must place its order six months in advance and must pay upon
Delivery. If the CFO is concerned that the dollar will depreciate relative to the Swiss franc, she
Could execute a hedge by

• A)buying put options on the Swiss franc.
• B)writing put options on the Swiss franc.
• C)writing call options on the Swiss franc.
• D)buying call options on the Swiss franc.

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Definitions:

Persuasive Advertising

A form of advertising that aims to influence the audience's behavior or attitudes towards a product or service through the use of appealing messages and persuasive techniques.

Inform

entails providing data or knowledge to someone, often to make them aware of something or to help them understand it better.

Persuade

The act of convincing someone to do or believe something through reasoning or argument.

Remind

The act of prompting or triggering someone's memory about something, often used in advertising to reinforce brand awareness.