If You Own a Foreign Currency Denominated Bond,you Can Hedge

question 35

Multiple Choice

If you own a foreign currency denominated bond,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)a swap contract where pay the cash flows of the bond in exchange for dollars.

---

Definitions:

Stigma

The disapproval or discrimination against a person or group based on perceivable social characteristics that serve to distinguish them from other members of a society.

Biomedical

Pertaining to the application of biological and physiological principles to clinical practice.

Genetic Explanations

Describe the role of genes and heredity in determining physical and behavioral traits in organisms, emphasizing the influence of genetics in various conditions and characteristics.

Cultural Influences

Refers to the impact that one's culture has on how they think, behave, and perceive the world around them, shaping their values, beliefs, and customs.