If a US Firm Is Receiving 100,000 Euros in 90 Days and Days

question 46

Multiple Choice

If a U.S. firm is receiving 100,000 euros in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could:​

• A) ​purchase a 90-day forward contract on euros.
• B) ​sell a 90-day forward contract on euros.
• C) ​purchase euros 90 days from now at the spot rate.
• D) ​sell euros 90 days from now at the spot rate.

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Definitions:

Antibiotic Resistance

The ability of bacteria to withstand the effects of an antibiotic to which they were once sensitive.

Genetic Material

The DNA or RNA present in cells which codes for genetic information necessary for the development, functioning, and reproduction of living organisms.

Endospore

A resting cell formed by certain bacteria; highly resistant to heat, radiation, and disinfectants.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, controlling the passage of substances in and out of the cell.