You Are a Financial Manager with ICN,Co

question 62

Multiple Choice

You are a financial manager with ICN,Co.and you have used a forward contract to hedge a yen 100,000,000 payment the company expects in 90 days.Your contract calls for you to deliver yen at 111.25 yen per U.S.dollar.Suppose the spot rate at that time is 109.75 yen per U.S.dollar.Did you gain or lose on the hedge? How much?

• A) Gain, $12,285.33
• B) Loss, $12,285.33
• C) Gain, $66,666.67
• D) Loss, $66,666.67

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Definitions:

Negative Therapy Effect

An adverse outcome in psychotherapy where the patient's symptoms worsen instead of improving.

Biopsychosocial Approach

A holistic perspective for understanding human health and illness that integrates biological, psychological, and social factors.

Biomedical

Pertaining to the application of biological and physiological principles to clinical practice and medical technology.

Psychodynamic

A psychological theory and therapy that emphasizes the interplay of unconscious drives and forces in shaping personality and behavior.