With futures contracts, the price at which the commodity must be delivered is
A) set when the futures contract is sold.
B) set when the contract expires.
C) is equivalent to the strike price for an options contract.
D) changes frequently during the life of the contract.
Answer: A
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a. True b. False Indicate whether the statement is true or false
Multinational companies can reduce the chance of a loss from expropriation by:
A. increasing the required rate of return a foreign subsidiary is expected to earn. B. establishing foreign subsidiaries in countries that have restrictive policies on repatriation of earnings. C. financing the foreign subsidiary using fund raised in the host country. D. obtaining insurance against economic losses associated with expropriation. E. investing all the funds in a single foreign subsidiary.
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Indicate whether the statement is true or false.