Your Firm Will Be Importing a Large Order of Its

question 65

Multiple Choice

Your firm will be importing a large order of its inputs from the United States in six months and is concerned that the Canadian dollar might fall against the U.S.dollar over that time.To hedge your risk,you decide to enter into a currency forward contract to purchase 500,000 USD at a rate of 1.0232 CAD/USD.If the spot exchange rate in six months' time ends up being 0.9967 CAD/USD,what is your gain or loss from hedging compared to remaining unhedged?

• A)$0
• B)$12,992
• C)$13,250
• D)-$13,250
• E)-$12,992

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Definitions:

Autonomy

The capacity to make an informed, uncoerced decision independently.

Gender Roles

The expectations and behaviors that society deems appropriate for individuals based on their perceived sex.

Masculinity Crisis

Refers to the challenges and uncertainties surrounding male identity and roles in contemporary society.

Male Gender Roles

involve the societal expectations and norms prescribed to men, influencing their behavior and self-perception.