If You Want to Hedge and Owe a Firm a Foreign

question 8

Multiple Choice

If you want to hedge and owe a firm a foreign currency in the future,you would

• A) buy the foreign currency forward.
• B) sell the foreign currency forward.
• C) speculate on the possibility to not hedge.
• D) buy the currency now and deposit into a bank account until needed.

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Definitions:

Quality Upgrade

A quality upgrade involves improving the standard and performance of a product, service, or process, striving for higher efficiency, reliability, and customer satisfaction.

Production Efficiencies

The optimization of resources and processes to maximize output while minimizing waste and costs in manufacturing.