If You Owe a Foreign Currency Denominated Debt, You Can

question 14

Multiple Choice

If you owe a foreign currency denominated debt, you can hedge with

• A)a long position in a currency forward contract.
• B)a long position in an exchange-traded futures option.
• C)buying the foreign currency today and investing it in the foreign county.
• D)both a and c

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Definitions:

Ethical Culture

A component of an organization's culture that emphasizes moral principles and ethical behavior in its practices and decision-making.

Workplace

A location where individuals are employed and perform tasks related to their jobs; it can range from physical offices to remote environments.

Ethical Leadership Behaviour

Actions and decision-making processes of leaders that are guided by principles of ethics and morality.

Psychological Well-Being

A state of mental health characterized by positive emotions, life satisfaction, and a sense of purpose.