Scenario - Aero,Inc. Aero,Inc.started from the Idea of Brad Aerostle of Madison,South Dakota

question 51

Multiple Choice

Scenario - Aero,Inc.
Aero,Inc.started from the idea of Brad Aerostle of Madison,South Dakota in 1992.Brad earned a financial degree from Harvard and had watched the financial markets for years.Armed with college credentials and knowledge,he believed he could offer needed services to individuals and companies desiring to conduct business around the globe.From the minute Brad put his idea into motion,his brainchild - Aero,Inc.- proved quite profitable.
Aero,Inc.currently has over five thousand clients ranging from slightly wealthy individuals to very rich and thriving corporations around the world.Brad's skill at what he does has made his company a sought out firm by those who want to prosper in the foreign marketplace.
-One of the prominent concerns the clients of Aero,Inc.express is that of currency fluctuations.The clients know fluctuations in currency can wind up costing them money.Aero,Inc.alleviates its clients concern by suggesting the client enter into a situation where currencies can be exchanged at a previously agreed exchange rate as a way to hedge exchange rate movements.Which one of the following best identifies what Aero,Inc.is likely suggesting?

• A) Currency swap
• B) Call option
• C) Sensitivity analysis
• D) Speculation
• E) Diversification

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Definitions:

Range Extender

A device that amplifies the wireless signal from a router to expand its coverage area, improving the signal quality in distant or hard-to-reach areas within the network coverage.

Network Adapters

Hardware devices that enable a computer to communicate over a network with other computers or devices.

Fiber-Optic

A technology that uses thin, flexible fibers of glass or plastic to transmit light, allowing for high-speed data transmission.

SSID

Service Set Identifier, the name assigned to a WiFi network to distinguish it from others.