If a Firm Hedges a Future Purchase of Euros by Purchasing

question 85

Multiple Choice

If a firm hedges a future purchase of euros by purchasing a call option,the firm ________ the potential cost but will benefit if the euro ________.

• A)fixes,depreciates
• B)fixes,appreciates
• C)caps,depreciates
• D)caps,appreciates
• E)eliminates,depreciates

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Definitions:

Appetite-Enhancing Center

A region in the brain, often associated with the hypothalamus, that stimulates the desire to eat.

Hormone

A chemical substance produced in the body that controls and regulates the activity of certain cells or organs.

PYY

A hormone, short for Peptide YY, produced in the gut in response to eating and is associated with reducing appetite and inhibiting food intake.

Leptin

A hormone produced by fat cells that is involved in the regulation of appetite and metabolism, often affecting feelings of satiety and hunger.