To Hedge a ____ in a Foreign Currency, a Firm

question 51

Multiple Choice

To hedge a ____ in a foreign currency, a firm may ____ a currency futures contract for that currency.

• A)receivable; purchase
• B)payable; sell
• C)payable; purchase
• D)none of the above

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Definitions:

Blastocyst

A structure formed in the early development of mammals, consisting of a cellular shell that encloses a cavity and a cluster of cells from which the embryo develops.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to and removing waste from the fetus.

Germinal Stage

The period of development between conception and the implantation of the embryo.

Diethylstilbestrol

A synthetic estrogen introduced in the late 1930s to treat various medical conditions, later found to cause cancer and other problems in the daughters of women who took it while pregnant.