Use the Following to Answer Questions

question 18

Multiple Choice

Use the following to answer questions:
Amazing Corporation,a U.S.enterprise,sold product to a customer in Wales on October 1,20x1 for £100,000 with payment required on April 1,20x1. Relevant exchange rates are: The discount factor corresponding to the company's incremental borrowing rate for 6 months is 0.95.
-What term is used to describe the circumstances under which Amazing Corporation is entering the forward contract?

• A)hedge of an unrecognized foreign currency firm commitment
• B)hedge of a recognized foreign-currency-denominated asset
• C)hedge of a forecast foreign-currency-denominated transaction
• D)hedge of net investment in foreign operations

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Definitions:

Innovation

Innovation involves the introduction of new ideas, goods, services, and processes to the market, playing a crucial role in economic growth and competitiveness.

New Method

An innovative or an improved way of accomplishing tasks or processes, often leading to increased efficiency or effectiveness.

Working Prototype

An initial version of a product that has enough features to allow for the testing and validation of core design concepts.

Invention

This is the creation of a new product, process, or idea that did not exist before.