Moffet Manufacturing wants the right to sell a foreign currency at a specified price at any time up to a specified date. Moffet most likely needs a ________.

Question

Quizplus · Accepted Answer

Moffet Manufacturing is looking for a financial instrument that allows them to sell a foreign currency at a predetermined price up to a specific date, which is exactly what a put option offers. A put option gives the holder the right, but not the obligation, to sell an asset at a specified price within a specified time frame.

Moffet Manufacturing Wants the Right to Sell a Foreign Currency