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:

Radial Vein

A vein that runs along the radial side of the forearm and drains blood from the hand and forearm.

Renal Vein

A blood vessel that carries filtered blood away from the kidney and toward the inferior vena cava.

Subclavian Vein

A major vein that receives blood from the arm and the chest wall, transporting it back to the heart.

External Iliac Vein

A large vein in the pelvic region that carries deoxygenated blood from the lower limbs back to the heart.