What Has Occurred When One Company Purchases the Right to Buy

question 45

Multiple Choice

What has occurred when one company purchases the right to buy a foreign currency sometime in the future at an exchange rate quoted today?

• A) The company has acquired a call option.
• B) The company has entered a forward contract.
• C) The currency has appreciated relative to the dollar.
• D) The company has acquired a put option.

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Definitions:

European Cartographers

Map-makers from Europe who played a crucial role in the Age of Exploration, documenting new lands and sea routes, and significantly shaping our understanding of the world's geography.

Reforms Implemented

Describes the actions taken to make changes or improvements within a system, organization, or policy to rectify issues or enhance functionality.

Kumbi Saleh

The capital city of the ancient Ghana Empire, serving as a thriving center for trade and learning in West Africa from the 9th to the 11th century.

West African Empire

Refers to several historical empires in West Africa, such as the Ghana, Mali, and Songhai empires, renowned for their wealth and contributions to trade and culture.