If a Corporation Hedges Payables with Currency Call Options, It

question 13

Multiple Choice

If a corporation hedges payables with currency call options, it will ____ if the value of the foreign currency is ____ than the exercise price when the payables are due.

• A)exercise the option; greater
• B)exercise the option; lower
• C)let the option expire; greater
• D)let the option expire; lower
• E)exercise the option; greater AND let the option expire; lower

---

Definitions:

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in the workplace or learning environment.

Higher-Status

Pertaining to individuals or groups that hold greater authority, prestige, or rank in a social or organizational hierarchy.

Organizational Communication

Refers to the methods and processes that facilitate the exchange of information and the management of communication within an organization.

Nonverbal Communication

Communication that occurs without the use of words, often involving body language, facial expressions, and other visual cues.