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If a Corporation Hedges Payables with Currency Call Options, It

question 62

Multiple Choice

If a corporation hedges payables with currency call options, it will ____ if the value of the foreign currency is ____ than the exercise price when the payables are due.


Definitions:

Gains

Benefits or profits accrued from investments, efforts, or other activities.

Losses

The state of being deprived of or of being without something that one has had or the detrimental impact resulting from such a situation.

Quantitative Aspects

The numerical, measurable dimensions or elements of a situation, study, or problem.

Qualitative Aspects

Features or characteristics that are observed and described based on qualities rather than quantitative measurements.

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