If a Firm Is Due to Be Paid in Euros

question 105

Multiple Choice

If a firm is due to be paid in euros in two months,to hedge against exchange rate risk the firm should

• A) sell foreign exchange futures short.
• B) buy foreign exchange futures long.
• C) stay out of the exchange futures market.
• D) do none of the above.

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Definitions:

Stereotypical

Referring to fixed, oversimplified, and generalized ideas or images held about particular groups or things.

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Visual content disseminated through various forms of media, influencing public perception and behavior.

Socially Constructed Roles

The roles and behaviors expected by society that are assigned to individuals based on their perceived gender or social position.

Gender

A social construct related to societal roles, behaviors, activities, and attributes that a given society considers appropriate for men and women.