Foreign Currency Options

question 41

Multiple Choice

Foreign currency options

• A) are not traded in Canada
• B) offer contracts only with six currencies in US
• C) can be used to hedge foreign exchange rate risk
• D) involve with cash settlement
• E) all of the above

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Definitions:

Limited Partnership

A business structure where one or more partners have limited liabilities, and at least one partner has unlimited liability.

Long-term Businesses

Companies or enterprises engaged in operations with the aim or expectation of continuing for many years into the future.

LLLP

A limited liability limited partnership, a type of partnership where some partners have limited liability (similar to limited partners in an LP) while also having the ability to participate in management.

General Partner

A general partner is an owner of a partnership who has unlimited liability and is typically involved in the day-to-day management of the business.