Assume you are an American exporter and expect to receive 50 pounds sterling at the end of 60 days. You can remove the risk of loss due to a devaluation of the pound sterling by
a. selling sterling in the forward market for 60-day delivery.
b. buying sterling now and selling it at the end of 60 days.
c. selling the dollar equivalent in the forward market for 60-day delivery.
d. keeping the sterling in Britain after it is delivered to you.
a. selling sterling in the forward market for 60-day delivery.
You might also like to view...
In computing debt to tangible net worth, which of the following is not subtracted in the denominator?
a. Copyrights b. Goodwill c. Patents d. Investments e. Trademarks
Which of the following initiates the communication process in the Shannon–Weaver model of communication?
A. receiver B. sender C. encoder D. channel
Zoom presentations are becoming a popular alternative to multimedia presentations because of their interactivity and cinematic capabilities.?
Indicate whether the statement is true or false
Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. The court's decision:
a. automatically terminates the offer. b. has no effect on the offer. c. acts as a condition on the offer. d. acts as a rejection of the offer by the offeree.