Which of the Following Is Probably Not Appropriate for an MNC

question 31

Multiple Choice

Which of the following is probably not appropriate for an MNC wishing to reduce its exposure to British pound payables?

• A) Purchase pounds forward.
• B) Buy a pound futures contract.
• C) Buy a pound put option.
• D) Buy a pound call option.

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Definitions:

Snowfall Levels

The depth or amount of snow accumulation in a specific area, often measured after a snowfall event.

Crop Growth

The process by which agricultural plants increase in size, mass, or yield.

Hypothesis

A suggested hypothesis developed from minimal evidence to initiate more detailed exploration.

Power

The probability that a test correctly rejects a false null hypothesis, also referred to as the sensitivity of the test.