When a US Company Purchases Parts from a Foreign Company, Which of Which

question 10

Multiple Choice

When a U.S. company purchases parts from a foreign company, which of the following will result in zero foreign exchange gain or loss?

• A) The transaction is denominated in U.S. dollars.
• B) The option strike price to sell foreign currency is less than the spot rate of the currency.
• C) The option strike price to buy foreign currency is less than the spot rate of the currency.
• D) The foreign currency appreciated in value relative to the U.S. dollar.
• E) The foreign currency depreciated in value relative to the U.S. dollar.

---

Definitions:

BACKSPACE Key

A keyboard key that deletes the character to the left of the cursor in a text field or document.

Layout Options

The various settings that influence how a document, presentation, or webpage is arranged, including margins, spacing, and positioning elements.

Graphic

A visual representation such as a chart, diagram, or image designed to illustrate or accompany information.

Additions

The act or process of adding one thing to another, increasing the total amount.