Peter Simpson thinks that the U.K. pound will cost $1.43/£ in six months. A 6-month currency futures contract is available today at a rate of $1.44/£
If Peter was to speculate in the currency futures market, and his expectations are correct, which of the following strategies would earn him a profit?
A) Sell a pound currency futures contract.
B) Buy a pound currency futures contract.
C) Sell pounds today.
D) Sell pounds in six months.
Answer: A
You might also like to view...
Which of the following is an acceptable gesture?
a. Playing with your hair b. Jiggling bracelets or pocket change c. Using fingers to show numbers d. Tapping your foot
Skyway Company, a U.S. airplane manufacturer, reported a balance of $8,100 million in Inventory at the beginning of 2013 and $9,600 million at the end of 2013 . Its income statement reported Cost of Products Sold of $45,400 million for 2013 . Compute the cost of inventory either purchased or manufactured during 2013 . (Skyway Company applies U.S. GAAP, and reports its results in millions of U.S
dollars.) a. $49,500 million b. $39,900 million c. $46,900 million d. $39,900 million e. none of the above
Intentional infliction of emotional distress will protect a person from rudeness if the conduct was intended to cause emotional distress
a. True b. False Indicate whether the statement is true or false
You work for a company that is marketing a new line of bathing suits. These bathing suits have a unique style that differs from other bathing suits, and you want to spread awareness among consumers and spark their interest. The bathing suit will be sold in stores nationwide. Probably the best promotion mix elements to use in your integrated marketing communications strategy are
A. personal selling and sales promotion. B. advertising and personal selling. C. advertising and sales promotion. D. public relations and sales promotion. E. personal selling and public relations.