Examlex

Solved

Your Firm Is a Swiss Importer of Bicycles

question 72

Multiple Choice

Your firm is a Swiss importer of bicycles.You have placed an order with a British firm for £1,000,000 worth of bicycles.Payment (in pounds sterling) is due in 12 months.Detail a strategy using futures contracts that will hedge your exchange rate risk.Have an estimate of how many contracts of what type and maturity. Your firm is a Swiss importer of bicycles.You have placed an order with a British firm for £1,000,000 worth of bicycles.Payment (in pounds sterling) is due in 12 months.Detail a strategy using futures contracts that will hedge your exchange rate risk.Have an estimate of how many contracts of what type and maturity.   A) Go short 100 12-month pound futures contracts; and long 200 12-month SFr.futures contracts. B) Go long 100 12-month pound futures contracts; and short 200 12-month SFr.futures contracts. C) Go short 100 12-month pound futures contracts. D) Go long 100 12-month pound futures contracts; and long 200 12-month SFr.futures contracts. E) None of the above


Definitions:

Pubertal Timing

The timing of the onset of puberty, which can vary widely among individuals and can affect physical and psychological development.

Secular Trend

The change from one generation to the next in an aspect of development, such as body size or in the timing of puberty.

Average Age

The mean age of a particular population or group, calculated by dividing the sum of the ages of all individuals by the number of individuals.

Amygdala

A brain structure that is part of the limbic system and plays a role in emotion, especially fear and anger.

Related Questions