Solved

If the Foreign Currency Is Expected to Appreciate to a Value

Question 11

Multiple Choice

If the foreign currency is expected to appreciate to a value higher than the appropriate forward rate:


A) a hedger will hedge foreign payables by buying a put option
B) a hedger will hedge foreign payables by selling the foreign currency forward
C) a hedger will not hedge foreign payables
D) a hedger will regret his decision to hedge foreign payables if the foreign currency is lower than the forward rate at maturity

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents