REFERENCE: Ref.09_03 Car Corp.(a U.S.-Based Company)sold Parts to a Korean Customer on Customer

question 72

Multiple Choice

REFERENCE: Ref.09_03
Car Corp.(a U.S.-based company) sold parts to a Korean customer on December 16,2008,with payment of 10 million Korean won to be received on January 15,2009.The following exchange rates applied:
SHAPE \* MERGEFORMAT

-Which statement is true regarding a foreign currency option?

• A)A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future.
• B)A foreign currency option gives the holder the obligation only sell foreign currency in the future.
• C)A foreign currency option gives the holder the obligation to only buy foreign currency in the future.
• D)A foreign currency option gives the holder the right but not the obligation to buy or sell foreign currency in the future.
• E)A foreign currency option gives the holder the obligation to buy or sell foreign currency in the future at the spot rate.

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Definitions:

Personal-selling Process

A series of steps followed by salespeople, including prospecting, approaching, presenting, handling objections, closing, and follow-up.

Technical Specialist

An individual with specialized knowledge and skills in a specific technical area, often employed to address complex issues.

Systems Integration

The process of linking together different computing systems and software applications physically or functionally, to act as a coordinated whole.

Technical Specialist

An expert in a specific field of technology, often hired to address complex technical issues or to improve systems and processes.