A Company Knows It Will Have to Pay a Certain

question 8

Multiple Choice

A company knows it will have to pay a certain amount of a foreign currency to one of its suppliers in the future.Which of the following is true

• A) A forward contract can be used to lock in the exchange rate
• B) A forward contract will always give a better outcome than an option
• C) An option will always give a better outcome than a forward contract
• D) An option can be used to lock in the exchange rate

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Definitions:

Twin Studies

Research that compares the similarity between monozygotic (identical) and dizygotic (fraternal) twins to understand genetic and environmental influences.

Fraudulent Results

Deliberately manipulated data or findings presented as genuine in research or reports.

Changed Data

The modification or alteration of data after it has been collected, which can affect the results or conclusions of a study or analysis.

Hypotheses Support

The extent to which research findings are consistent with the predictions made by a hypothesis.