A Japanese EXPORTER Has a €1,000,000 Receivable Due in One

question 39

Multiple Choice

A Japanese EXPORTER has a €1,000,000 receivable due in one year. Estimate the cost today of an options strategy that will eliminate exchange rate risk.

• A)$20,000
• B)$5,000
• C)$12,500
• D)None of the above

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Definitions:

Telegraphic Speech

The early speech stage in which a child speaks like a telegram—"go car"—using mostly nouns and verbs.

Language Development

Language development involves the process by which children come to understand and communicate language during early childhood.

Babbling

Stage in language development involving the production of sounds or syllables repeated by infants before speaking recognizable words.