Conditional Currency Options Are

question 101

Multiple Choice

Conditional currency options are:

• A) options that do not require premiums.
• B) options where the premiums are canceled if a trigger level is reached.
• C) options that allow the buyer to decide what currency the option will be settled in.
• D) none of the above

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Definitions:

Operating Cycle

The average period of time between the purchase of goods and services for production and the receipt of cash from sales of the final products.

Inventory Turnover

A financial ratio that measures how many times a company's inventory is sold and replaced over a specific period.

Payables Turnover

A financial ratio that shows how quickly a company pays off its suppliers by comparing net purchases to average accounts payable.

Accounts Receivable Period

The average number of days it takes for a company to collect payments from its credit sales.