Which of the Following List Would Not Be Effective as a Hedge

question 16

Multiple Choice

Which of the following list would not be effective as a hedge for a Canadian company with a large number of transactions in Denmark?

• A)Danish krone held by a Canadian bank.
• B)A forward contract for the purchase of Danish krone.
• C)A forward contract for the sale of Danish krone.
• D)Canadian funds held by a Danish bank.

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Definitions:

Belongingness

The human emotional need to be an accepted member of a group, whether it is friends, family, or a larger community.

Emotional Cohesion

The bonding of group members through shared feelings, empathy, or emotional experiences that enhance a sense of unity or togetherness.

Goal-Focused Team Work

Collaborative effort where team members are unified in pursuing specific objectives, leading to more directed and effective outcomes.

Task Cohesion

Refers to the extent to which members of a group work together to achieve common goals.