Scenario: ABC Software ABC Software Is a Producer of Educational Software for Small

question 88

Multiple Choice

Scenario: ABC Software
ABC Software is a producer of educational software for small children.The company has operations in Switzerland and would like to expand its foreign production with a new facility in China.
-If ABC Software simultaneously purchases and sells foreign exchange for two different dates,it is doing which of the following?

• A)Increasing its foreign exchange rate risk
• B)Conducting a currency swap
• C)Entering an arbitrage situation
• D)Buying and selling at the spot rate

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