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:

Word-for-Word Plagiarism

The act of copying another's work verbatim without proper attribution or citation.

Quotation Marks

Punctuation marks used in pairs to signify the beginning and end of a direct quote or to denote the title of short works, like articles or poems.

Citing Source

The practice of acknowledging the original source of information or ideas in one's work to give credit to the authors.

Paraphrasing Plagiarism

A type of plagiarism where the writer changes words or phrases but retains the original idea of the source without proper citation.