Which of the Following Is NOT True About a Range

question 1

Multiple Choice

Which of the following is NOT true about a range forward contract?

• A) It ensures that the exchange rate for a future transaction will lie between two values
• B) It can be structured so that it costs nothing to set up
• C) It is constructed from two options and a forward contract
• D) It can be used to hedge either a future inflow or a future outflow of a foreign currency

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Definitions:

Acculturative Stress

The psychological impact of adaptation to a new culture, often resulting in anxiety, depression, and other stress-related symptoms.

Alarm Reaction

The initial response in the stress model, involving the activation of the body's defensive mechanisms.

Daily Hassle

Daily hassle refers to the routine challenges or minor irritations that occur day-to-day, contributing to stress.

Stress Appraisal

The process by which individuals evaluate and cope with a stressful situation, determining its significance and how to manage it.