The Purchase of a Currency Put Option Would Be Appropriate

question 115

Multiple Choice

The purchase of a currency put option would be appropriate for which of the following?

• A) Investors who expect to buy a foreign bond in one month.
• B) Corporations who expect to buy foreign currency to finance foreign subsidiaries.
• C) Corporations who expect to collect on a foreign account receivable in one month.
• D) all of the above

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Definitions:

Recidivism

The tendency of a convicted criminal to reoffend.

Behavioral Controls

Strategies or mechanisms put in place to guide or modify individual behavior.

Total Institution

A place of residence and work where a large number of like-situated individuals, cut off from the wider community, live in an enclosed formally administered round of life.

Maximum Security Institution

A highly secure prison designed to house the most dangerous offenders and prevent escapes.