Solved

The Following Exchange Rates Existed Between the U

Question 42

Multiple Choice

The following exchange rates existed between the U.S. dollar and the Canadian dollar at a given point in time: The following exchange rates existed between the U.S. dollar and the Canadian dollar at a given point in time:   -If an American firm expects to receive payment in Canadian dollars 90 days from now and is concerned that the spot exchange rate in 90 days will be less than U.S. $0.7016, it should A) agree to buy Canadian dollars forward at the exc   B) agree to deliver Canadian dollars 90 days from now in exchange for   by selling the Canadian dollars forward. C) agree to buy 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars. D) agree to deliver 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars.
-If an American firm expects to receive payment in Canadian dollars 90 days from now and is concerned that the spot exchange rate in 90 days will be less than U.S. $0.7016, it should


A) agree to buy Canadian dollars forward at the exc The following exchange rates existed between the U.S. dollar and the Canadian dollar at a given point in time:   -If an American firm expects to receive payment in Canadian dollars 90 days from now and is concerned that the spot exchange rate in 90 days will be less than U.S. $0.7016, it should A) agree to buy Canadian dollars forward at the exc   B) agree to deliver Canadian dollars 90 days from now in exchange for   by selling the Canadian dollars forward. C) agree to buy 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars. D) agree to deliver 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars.
B) agree to deliver Canadian dollars 90 days from now in exchange for The following exchange rates existed between the U.S. dollar and the Canadian dollar at a given point in time:   -If an American firm expects to receive payment in Canadian dollars 90 days from now and is concerned that the spot exchange rate in 90 days will be less than U.S. $0.7016, it should A) agree to buy Canadian dollars forward at the exc   B) agree to deliver Canadian dollars 90 days from now in exchange for   by selling the Canadian dollars forward. C) agree to buy 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars. D) agree to deliver 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars. by selling the Canadian dollars forward.
C) agree to buy 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars.
D) agree to deliver 1.4253 U.S. dollars 90 days from now in exchange for 0.7016 Canadian dollars.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents