Kalons, Inc

question 99

Multiple Choice

Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is not an appropriate hedging technique under these circumstances?

• A) purchase Canadian dollars forward.
• B) purchase Canadian dollar futures contracts.
• C) purchase Canadian dollar put options.
• D) purchase Canadian dollar call options.

---

Definitions:

Outbound-To-Customer

Logistic processes and activities involved in moving goods from the final storage hub to the end customer.

Physical Distribution

The activities involved in moving goods from the point of production to the point of consumption.

Mean Absolute Deviation

A statistical measure used to quantify the spread or variability in a data set, indicating the average absolute difference from the mean.

MAD

Mean Absolute Deviation, a measure used in statistics to quantify the average absolute dispersion or deviation from the mean or average.