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.

Recognize the criteria and legal significance of different types of gifts (inter vivos, causa mortis).

Understand the role of contracts in the transfer of property and title.

Identify the legal responsibility of parties in bailment relationships and the impact of liability limitations.

Comprehend the mechanisms through which title to property is transferred.

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Definitions:

Positive Relationship

A relationship between two variables where as one variable increases, the other variable also increases or as one decreases, the other also decreases.

Two-Tailed

A two-tailed test in statistics is used when the area under consideration is on both sides of the distribution, testing for any significant difference without specifying direction.

Sample Size

The number of subjects or units included in a sample taken from a population for the purpose of statistical analysis.

Rank-Order

A method of arranging data points based on their relative position or value in ascending or descending order.