What Was the Net Increase or Decrease in Cash Flow

question 77

Multiple Choice

What was the net increase or decrease in cash flow from having purchased the foreign currency option to hedge this exposure to foreign exchange risk?

• A) $0
• B) $10,000 increase.
• C) $10,000 decrease.
• D) $20,000 increase.
• E) $20,000 decrease.

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Definitions:

Deca-

A prefix meaning ten, used in forming terms denoting objects composed of ten parts or units.

Primi-

A prefix meaning "first" used in medical terminology to denote the first occurrence or a primary condition.

Tri-

A prefix meaning three, used in terms referring to three parts or threefold.

Epigastric

Pertaining to the abdominal region located above the stomach.