​A US Firm Is Bidding for a Project Needed by the the Swiss

question 23

Multiple Choice

​A U.S. firm is bidding for a project needed by the Swiss government. The firm will not know if the bid is accepted until three months from now. The firm will need Swiss francs to cover expenses but will be paid by the Swiss government in dollars if it is hired for the project. The firm can best insulate itself against exchange rate exposure by:

• A) ​selling futures in francs.
• B) ​buying futures in francs.
• C) ​buying franc put options.
• D) ​buying franc call options.

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Definitions:

Cranial Nerves

Twelve pairs of nerves that emerge directly from the brain, not the spinal cord, and control various functions including senses and motor functions.

Peripheral Nervous System

Consists of the nerves and ganglia outside of the brain and spinal cord, responsible for transmitting information to and from the central nervous system.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, serving as the main pathway for information connecting the brain and peripheral nervous system.

Critical Period

A specific time during development when the presence or absence of certain experiences has a long-lasting influence on an individual.