To Hedge a Receivable Position with a Currency Option Hedge

question 15

True/False

To hedge a receivable position with a currency option hedge, an MNC would buy a put option.

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Definitions:

Nutrient Supply

The availability of essential chemical elements or compounds required for the growth, reproduction, and maintenance of living organisms.

Zooplankton

Small free-floating aquatic organisms, primarily small animals or the larval stages of larger animals, serving as a crucial food source in aquatic ecosystems.

Earth's Core

The innermost part of the Earth, consisting of a solid inner core and a liquid outer core primarily made of iron and nickel.

Friction

The resistance that one surface or object encounters when moving over another, usually resulting in the generation of heat.