A Company Knows It Will Have to Pay a Certain

question 8

Multiple Choice

A company knows it will have to pay a certain amount of a foreign currency to one of its suppliers in the future.Which of the following is true

• A) A forward contract can be used to lock in the exchange rate
• B) A forward contract will always give a better outcome than an option
• C) An option will always give a better outcome than a forward contract
• D) An option can be used to lock in the exchange rate

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Definitions:

Cognitive Therapy

A type of psychotherapeutic treatment that helps patients understand the thoughts and feelings that influence behaviors, focused on changing negative thought patterns.

Theoretical Background

Theoretical Background encompasses the foundational theories, principles, and knowledge that form the basis for academic research or a specific study.

Key Concepts

Fundamental ideas or principles that are central to a particular field of study or area of expertise.

Atypical Neuroleptic

Refers to a class of drugs used to treat psychiatric conditions, which are less likely to produce certain side effects common with traditional neuroleptics, like movement disorders.