A Company Due to Pay a Certain Amount of a Foreign

question 16

Multiple Choice

A company due to pay a certain amount of a foreign currency in the future decides to hedge with futures contracts.Which of the following best describes the advantage of hedging?

• A) It leads to a better exchange rate being paid
• B) It leads to a more predictable exchange rate being paid
• C) It caps the exchange rate that will be paid
• D) It provides a floor for the exchange rate that will be paid

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Definitions:

Moral Decisions

Choices made by individuals that involve considerations of right and wrong or ethical principles.

Internalized Homophobia

The acceptance by LGBT individuals of negative societal attitudes or prejudices against homosexuality, leading to self-hatred or denial of one's sexual orientation.

Religious Family

A family that adheres to and practices specific religious beliefs and rituals, often passing these traditions to the next generation.

Sexually Healthy

Pertaining to a state where an individual has a positive and respectful approach to sexuality and sexual relationships, free from disease and coercion.