Which of the following is not an instrument used by MNCs to cover their foreign currency positions?
A) Forward contracts.
B) Futures contracts.
C) Non-deliverable forward contracts.
D) Options.
E) All of the above are instruments used to cover foreign currency positions.
Correct Answer:
Verified
Q3: A call option on Australian dollars has
Q4: The one-year forward rate of the British
Q9: You purchase a call option on dollars
Q11: You are a speculator who sells a
Q22: Due to put-call parity, we can use
Q29: If you purchase a straddle on euros,
Q39: The writer of a call option is
Q49: There are no transactions costs associated with
Q53: Since futures contracts are traded on an
Q114: If you have bought the right to
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents