Hedging Foreign Currency Transactions Can Be Accomplished By

question 81

Multiple Choice

Hedging foreign currency transactions can be accomplished by:

• A)equal amounts of receivables and payables in foreign currencies.
• B)the purchase of future contracts.
• C)the purchase of foreign currencies to be received in the future.
• D)all of the above.

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Definitions:

Declaration Date

The date on which a company's board of directors announces its next dividend payment, including the amount to be paid and the record and payment dates.

Ex-dividend Date

The specific date on which a stock is traded without its dividend rights, meaning any subsequent buyer will not receive the next dividend payment.

Stock Transfer Books

Records maintained by a company documenting the ownership and transfer of its stock, used to ensure legal ownership and voting rights.

Stock Dividend

Essentially a stock split in which the number of new shares issued is less formal and usually smaller.