If a Salerno Inc

question 16

Multiple Choice

If a Salerno Inc.desired to lock in a minimum rate at which it could sell its net receivables in Japanese yen but wanted to be able to capitalize if the yen appreciates substantially against the dollar by the time payment arrives,the most appropriate hedge would be:

• A) a money market hedge.
• B) a forward sale of yen.
• C) purchasing yen call options.
• D) purchasing yen put options.
• E) selling yen put options.

---

Definitions:

Personal Construct Theory

A psychological theory developed by George Kelly, suggesting that individuals interpret the world and construct their own models of reality through bipolar constructs.

Construct Organization

In personal construct theory, this refers to the way in which individual personal constructs are arranged or ordered within a person's mind, affecting perception and behavior.

Personal Construct Theory

A psychological theory developed by George Kelly in 1955, proposing that individuals use personal constructs (mental models) to understand and interpret their experiences.

Sociality Corollary

A principle suggesting that the establishment and understanding of personal identity are significantly influenced by social relationships and interactions.