Suppose That the Spot Rate and the 90-Day Forward Rate

question 13

Multiple Choice

Suppose that the spot rate and the 90-day forward rate on the pound sterling are $1.35 and $1.30,respectively.Your company,wishing to avoid foreign exchange risk,sells £500,000 forward 90 days.Assuming that the spot rate remains the same 90 days hence,your company would

• A)receive £500,000 90 days hence
• B)receive more than £500,000 in 90 days
• C)have been better off not to have sold pounds forward
• D)receive nothing

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Definitions:

Critically Ill

A state of health in which patients are suffering from severe and life-threatening health conditions, requiring complex and urgent medical care.

Radial Pulse Rate

The number of beats per minute measured at the radial artery, typically located on the wrist, used as an indicator of heart rate.

Cardiac Monitor

A medical device used to continuously monitor the heart's activity and rhythms, critical for patients with cardiovascular conditions or those undergoing certain medical procedures.

Irregular

Not following a pattern; erratic or inconsistent, often used to describe abnormal rhythms in biological contexts.