Which of the Following Actions Could a Company Use to Hedge

question 34

Multiple Choice

Which of the following actions could a company use to hedge balance sheet exposure?

• A) Forward contract on foreign currency
• B) Foreign currency option
• C) Foreign currency borrowing
• D) All of the above may be used to hedge balance sheet exposure.

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Definitions:

OCH Bond Angle

The angle formed between an oxygen, carbon, and hydrogen atom within a molecule, important for determining molecular geometry.

Cis-trans Isomers

Molecules with the same molecular formula but differing in the spatial arrangement of atoms or groups around a double bond or ring structure, leading to distinct properties.

Constitutional Isomers

Molecules that have the same molecular formula but differ in the way their atoms are connected.

Isomeric

Molecules that have the same molecular formula but differ in the arrangement of their atoms or in the spatial orientation of their atoms.