What Has Occurred When One Company Arranges to Buy a Foreign

question 24

Multiple Choice

What has occurred when one company arranges to buy a foreign currency sometime in the future, at an exchange rate quoted today?

• A) The company has purchased a foreign currency option.
• B) The company has entered a forward contract.
• C) The currency has been devalued.
• D) None of the above

---

Definitions:

Drawings

Visual representations made on a surface, usually paper, with the use of pencils, crayons, ink, or other mediums.

Societies Across

A term likely referring to the study or observation of various cultures and societies around the world, focusing on their differences and similarities.

Early Childhood

A developmental stage that spans from infancy to kindergarten age, characterized by rapid physical, cognitive, and emotional growth.

Somnambulism

A sleep disorder known as sleepwalking, where an individual walks or performs other complex behaviors while asleep.