A ________ Allows, but Does Not Require, a Firm to Buy

question 41

Multiple Choice

A ________ allows, but does not require, a firm to buy or sell a specified amount of foreign currency at a specified price at any time up to a specified date.

• A) forward swap
• B) currency option
• C) call option
• D) discount put

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Definitions:

Market Dominance

Market dominance refers to the situation where a company has a significant share of the total sales of a particular product or service, giving it substantial control over the market.

Herfindahl Index

The Herfindahl Index is a measure of the size of firms in relation to the industry and an indicator of the amount of competition among them, calculated by summing the squares of each firm's market share.

Clayton Act

A U.S. antitrust law enacted in 1914 to promote competition and prevent monopolies by prohibiting certain actions that could lead to anticompetitive practices.

Antitrust Authorities

Government or regulatory entities responsible for enforcing laws designed to promote competition and prevent monopolistic practices within markets.