An Options Contract to Hedge Possible Future Price Changes of an Inventory

question 7

Multiple Choice

An options contract to hedge possible future price changes of an inventory of supply parts would:

• A)Represent a cash flow hedge.
• B)Represent a fair value hedge.
• C)Represent a foreign currency hedge.
• D)Not qualify as a hedge.

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A government aid program in the U.S. aimed at aiding low-income families to reach financial independence through monetary support and assistance services.

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Temporary Assistance for Needy Families, a government program that provides financial aid to eligible low-income families.