If a Firm Must Pay for Goods It Has Ordered

question 58

Multiple Choice

If a firm must pay for goods it has ordered with foreign currency,it can hedge its foreign exchange-rate risk by ________ foreign exchange futures ________.

• A)selling;short
• B)buying;long
• C)buying;short
• D)selling;long

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Definitions:

Business Model Canvas

A strategic management template for developing new or documenting existing business models visually.

Blocks

Obstacles or barriers that impede progress or prevent achievement of goals.

Business Concept

An idea for a business that includes basic information such as the product or service, the target market, and a unique selling proposition that differentiates it from competitors.

Formal Business Plan

A detailed document that outlines a company's goals, strategies, market analysis, financial forecasts, and operational plans.