Which of the Following Statements Is FALSE

question 41

Multiple Choice

Which of the following statements is FALSE?

• A) Currency options allow firms to lock in a future exchange rate; currency forward contracts allow firms to insure themselves against the exchange rate moving beyond a certain level.
• B) Generally speaking, cash-and-carry strategies are used primarily by large banks, which can borrow easily and face low transaction costs.
• C) Currency options, like the stock options, give the holder the right-but not the obligation-to exchange currency at a given exchange rate.
• D) Many managers want the firm to benefit if the exchange rate moves in their favor, rather than being stuck paying an above-market rate.

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Definitions:

Virtual Meetings

Online gatherings facilitated through internet-based platforms, allowing participants to communicate and collaborate from different locations.

Travel Costs

Expenses associated with traveling for business or personal reasons, including transportation, lodging, and meals.

Employee Fatigue

Employee fatigue refers to a state of extreme tiredness or exhaustion experienced by employees, often resulting from long hours, intense workloads, or stress.

Purpose

The reason for which something exists or is done, made, or used.