If You Have a Long Position in a Foreign Currency

question 34

Multiple Choice

If you have a long position in a foreign currency, you can hedge with:

• A)A short position in an exchange-traded futures option
• B)A short position in a currency forward contract
• C)A short position in foreign currency warrants
• D)Borrowing (not lending) in the domestic and foreign money markets

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Definitions:

Seligman

A psychologist known for his work on learned helplessness, positive psychology, and well-being.

Depression

A mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in life.

Learned Helplessness

A state where an individual experiences feelings of being powerless, resulting from a traumatic experience or ongoing inability to achieve success.

Seligman

A psychologist known for his work on learned helplessness and positive psychology.