​Kalons, Inc

question 17

Multiple Choice

​Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is not an appropriate hedging technique under these circumstances?

• A) ​Purchase Canadian dollars forward.
• B) ​Purchase Canadian dollar futures contracts.
• C) ​Purchase Canadian dollar put options.
• D) ​Purchase Canadian dollar call options.

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Definitions:

Involuntarily Committed

This refers to a legal process through which individuals with severe mental health issues are hospitalized or treated without their consent due to potential harm to themselves or others.

Mental Hospital

A healthcare facility specializing in the treatment and care of patients with mental illnesses.

Psychoanalysis

A method of therapy and theory of personality developed by Sigmund Freud that emphasizes unconscious motives and conflicts.

Conscious Awareness

The state of being awake and aware of one's surroundings, thoughts, and feelings.