Xin Is Selling His Transformer Over the Internet for C$500

question 28

Multiple Choice

Xin is selling his transformer over the internet for C$500.An interested buyer says he is willing to pay 360 euro in six months.What position should Xin take to eliminate his foreign exchange exposure?

• A)500 long Canadian forward contract
• B)500 short Canadian forward contract
• C)360 long euro forward contract
• D)360 short euro forward contract

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Definitions:

Sequencer Control Parameter

A setting or value that determines the behavior of a sequencing control, often used in automation and process control.

Status Bits

Specific bits within a computer's processor or memory that represent the current status or condition of an operation, process, or function, influencing decision-making processes.

Shift Instructions

In programming and digital systems, shift instructions are used to move or "shift" bits in a register or variable to the left or right, often for operations like multiplication or division.

Bit Shift Up

Bit shift up is a binary operation that moves the bits of a binary number to the left by a specified number of positions, effectively multiplying the number by a power of two.