If a U.S. firm desires to avoid the risk from exchange rate fluctuations, and it will need C$200,000 in 90 days to make payment on imports from Canada, it could:
A) obtain a 90-day forward purchase contract on Canadian dollars.
B) obtain a 90-day forward sale contract on Canadian dollars.
C) purchase Canadian dollars 90 days from now at the spot rate.
D) sell Canadian dollars 90 days from now at the spot rate.
Correct Answer:
Verified
Q2: _ is not a bank characteristic important
Q3: Assume that a bank's bid rate on
Q4: The ask quote is the price for
Q5: LIBOR is:
A) the interest rate commonly charged
Q6: Assume that a bank's bid rate on
Q7: The international credit market primarily concentrates on:
A)
Q8: The forward rate is the exchange rate
Q9: A forward contract can be used to
Q10: Forward markets for currencies of developing countries
Q11: The international money market primarily concentrates on:
A)
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