To Hedge a Foreign Currency Payable

question 10

Multiple Choice

To hedge a foreign currency payable,

• A)buy call options on the foreign currency.
• B)buy put options on the foreign currency.
• C)sell call options on the foreign currency.
• D)sell put options on the foreign currency.

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Definitions:

Deficit

The amount by which a government's, company's, or individual's spending exceeds its income over a particular period of time.

2009

A year that marked the end of the late-2000s financial crisis and the beginning of economic recovery for many countries.

Productivity Growth

An increase in the efficiency of production, often measured as the rate at which an economy can produce goods and services relative to inputs over time.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.