A Forward Contact to Buy US$40 000 for a Planned

question 16

Multiple Choice

A forward contact to buy US$40 000 for a planned purchase transaction of US$50 000 has a hedge ratio of:

• A) 40%.
• B) 125%.
• C) 80%.
• D) 20%.

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Definitions:

United States

A country located in North America, known for its vast size, diverse population, and significant influence on global politics, economy, and culture.

Unevenly Distributed

Characterized by an irregular or unequal allocation of resources or opportunities among different groups or individuals.

Health Risks

Factors or behaviors that can increase the likelihood of developing health problems or diseases.

Gender Inequalities

Refers to the unequal treatment or perceptions of individuals based on their gender.