The Hedging Contract That Gives the Buyer the Right,but Not

question 5

Multiple Choice

The hedging contract that gives the buyer the right,but not the obligation,to buy a specific amount of foreign currency with domestic currency is known as the ________.

• A) call option
• B) put option
• C) American option
• D) European option

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Definitions:

Abiotic Environment

The non-living parts of the environment that affect living organisms, including climate, soil, and water.

Ecotourism

Travel focused on sustainable, respectful exploration and conservation of natural environments.

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem, encompassing genetic, species, and ecosystem diversity.

Tropical Rain Forests

Dense forests located in the tropics, characterized by high rainfall, significant biodiversity, and a canopy structure.