A US Corporation Has Purchased Currency Put Options to Hedge a a 100,000

question 140

Multiple Choice

A U.S. corporation has purchased currency put options to hedge a 100,000 Canadian dollar (C$) receivable. The premium is $.01 and the exercise price of the option is $.75. If the spot rate at the time of maturity is $.85, what is the net amount received by the corporation if it acts rationally?

• A) $74,000
• B) $84,000
• C) $75,000
• D) $85,000

Understand the physical principles behind gel electrophoresis.

Differentiate between various genetic treatment methods, including gene therapy.

Recognize the significance of DNA fingerprinting techniques.

Understand the multifactorial nature of cancer development.

---

Definitions:

Peer Pressure

The influence exerted by a peer group in encouraging a person to change their attitudes, values, or behaviors to conform to group norms.

Legal Blood Alcohol Limit

The maximum concentration of alcohol allowed in an individual's bloodstream while operating a vehicle, as prescribed by law.

Under 21 Years

A legal or social distinction applied to individuals who have not yet reached the age of 21, often in the context of age-limited activities or rights.

Lung Cancer Deaths

Fatalities resulting from lung cancer, which is a disease characterized by uncontrolled cell growth in tissues of the lung.