Buckingham Inc

question 90

Multiple Choice

Buckingham Inc., a British corporation, owes Yank Inc., a U.S. corporation, $1 million due in 2 months. How can Buckingham hedge the exchange risk?

• A) Sell pounds in the spot market
• B) Buy pounds in the forward market
• C) Sell dollars in the spot market
• D)Buy dollars in the forward market

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Definitions:

Supply Chain

The entire process of making and selling commercial goods, including raw materials sourcing, manufacturing, distribution, and sales.

Small Players

Companies or entities that have a minor share in a market or industry, typically characterized by smaller teams, budgets, or influence.

Response Time

The duration between when a request is made and when the response is received.

Facilities

Physical locations like factories, warehouses, and distribution centers involved in the production, storage, and distribution of goods in a supply chain.