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Social Science Clinic => Economics => Microeconomics => Topic started by: Pineappleeh on Jun 30, 2018

Title: A company can protect against exchange rate risk A) with a forward contract. B) by not having ...
Post by: Pineappleeh on Jun 30, 2018

A company can protect against exchange rate risk
 A) with a forward contract.
  B) by not having foreign operations.
  C) by hedging the price of its products.
  D) All of these choices is true.

Question 2

In a forward contract
 A) the spot price is held constant.
  B) you can lock in today's price for the future.
  C) you can lock in a future price today.
  D) you can lock in a future quantity today.

Title: A company can protect against exchange rate risk A) with a forward contract. B) by not having ...
Post by: Leostella20 on Jun 30, 2018

Answer to Question 1

A

Answer to Question 2

C

Title: A company can protect against exchange rate risk A) with a forward contract. B) by not having ...
Post by: Pineappleeh on Jun 30, 2018

Thank you

Title: A company can protect against exchange rate risk A) with a forward contract. B) by not having ...
Post by: Leostella20 on Jun 30, 2018

No problemo