Which of the following are rules to use when choosing between forward contracts and currency options:
A) When the quantity of a foreign-currency cash outflow is known, buy the currency forward.
B) When the quantity of a foreign-currency cash outflow is unknown, buy the currency forward.
C) When the quantity of a foreign-currency cash flow is partially known and partially uncertain, use a forward contract to hedge the known and unknown portions.
D) When the quantity of a foreign-currency cash inflow is known, buy the currency forward.
Correct Answer:
Verified
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Q5: The potential effect of exchange rate fluctuations
Q6: Which of the following is not one
Q7: Operational techniques include:
A)diversification of a company's operations
B)purchasing
Q8: A(n) _ hedge protects the company from
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Q12: A forward currency transaction:
A)Sets the future date
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Q14: If the Indian subsidiary of a US
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