Kalons, Inc

question 6

Multiple Choice

Kalons, Inc. is a U.S.-based MNC that frequently imports raw materials from Canada. Kalons is typically invoiced for these goods in Canadian dollars and is concerned that the Canadian dollar will appreciate in the near future. Which of the following is not an appropriate hedging technique under these circumstances?

• A) purchase Canadian dollars forward.
• B) purchase Canadian dollar futures contracts.
• C) purchase Canadian dollar put options.
• D) purchase Canadian dollar call options.

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Definitions:

Market Wage

The prevailing wage rate for labor in a particular market, influenced by supply and demand.

Pairwise Majority Voting

A voting system in which each option is compared head-to-head with every other option, and the option that wins the most comparisons is selected.

Transitivity

The concept in mathematics and logic that if relation "A" is related to "B", and "B" is related to "C", then "A" is related to "C".

Prefers

Indicates a choice or inclination for one option over others based on certain criteria or personal judgment.