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:

Personal Information Management

The practice of managing and organizing electronic data related to an individual's personal details, schedules, communications, and resources.

Business Contacts

Individuals or entities involved in commercial interactions, providing opportunities for networking, partnerships, and sales.

Computer Instructions

Commands or codes input into a computer that dictate the operations the computer performs.

Application Software

A program or group of programs designed for end-users to perform specific tasks, such as word processing, accounting, or database management.