Which of the Following Is a Basic Hedging Technique During

question 25

Multiple Choice

Which of the following is a basic hedging technique during a depreciation?

• A)buy local currency forward
• B)sell a local currency put option
• C)reduce levels of local currency cash and marketable securities
• D)loosen credit increase local currency receivables.

---

Definitions:

Ocean Floor

The bottom surface of the ocean, consisting of various features such as plains, trenches, and ridges.

Seamounts

Underwater mountains formed by volcanic activity, rising from the ocean floor but not reaching the surface.

Smooth

Describes surfaces with an even or flat texture that is free of abrasions or roughness.

Continental Rifting

The process by which a continent stretches and splits along a rift zone, often leading to the formation of new oceanic crust.