HIJ Corporation Expects a Need to Make Future Payments in a Foreign

question 86

Multiple Choice

HIJ Corporation expects a need to make future payments in a foreign currency in two years; to minimize the risk that such a payment may increase due to changes in exchange rates, the company may buy:

• A) currency spots.
• B) currency futures.
• C) more foreign assets in the foreign currency.
• D) FOREX ETFs.

---

Definitions:

Regulatory Power

The authority granted to government agencies or bodies to enact and enforce rules and regulations governing certain activities or industries.

Comparative Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based lawsuit, in proportion to the plaintiff's own percentage of fault.

Contributory Negligence

A legal doctrine where a party's own negligence contributes to their harm or loss, potentially limiting or barring their recovery in a lawsuit.

Professional Defense

Legal and strategic protection for professionals against claims arising from their professional actions or conduct.