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.

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Definitions:

Nonsteroidal Anti-inflammatory Drug

Medications that reduce pain, decrease fever, and, in higher doses, lower inflammation.

Health Care Provider

A person or organization that offers medical or therapeutic services to individuals or communities.

Analgesics

Medications designed to relieve pain without causing the loss of consciousness, often over-the-counter or prescription drugs.

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A specialized department in a hospital that provides comprehensive and continuous care for patients who are critically ill or require life support.