By Using Options a Firm Can Protect Against Increase in Raw

question 115

True/False

By using options a firm can protect against increase in raw material prices,while continuing to benefit from price decreases.

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Definitions:

Trade Surpluses

A condition in international trade where a country exports more goods and services than it imports.

Balance Of Payments Surpluses

A situation where the total amount of money coming into a country from abroad exceeds the total amount of money leaving the country.

Account Surpluses

Refers to the positive balance of the funds in an account, or situations where revenues exceed the expenditures in fiscal accounts.

Trade Deficit

A situation where a country imports more goods and services than it exports.