If You Think That the Dollar Is Going to Appreciate

question 62

Multiple Choice

If you think that the dollar is going to appreciate against the euro,you should

• A)buy put options on the euro.
• B)sell call options on the euro.
• C)buy call options on the euro.
• D)none of the options

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Definitions:

Cash Flow

The net amount of cash and cash-equivalents being transferred in and out of a business, crucial for its liquidity, solvency, and financial flexibility.

Language Of Finance

The specific jargon, terms, and concepts used in the finance industry to communicate financial information and decisions.

Proprietor Form

A business structure owned by a single individual, where the owner and the business are legally the same entity.

Double Taxation

The imposition of taxes on the same income, asset, or financial transaction at two different levels of government, often seen in the taxation of corporate profits and then again when dividends are paid to shareholders.