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Author Question: If ABC Software simultaneously purchases and sells foreign exchange for two different dates, the ... (Read 23 times)

cherise1989

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on: Jul 7, 2018
If ABC Software simultaneously purchases and sells foreign exchange for two different dates, the company is said to be involved in ________.
 
  A) increasing its foreign exchange rate risk
  B) conducting a currency swap
  C) entering an arbitrage situation
  D) buying and selling at the spot rate

Question 2

If ABC Software holds a currency option to purchase Swiss francs at SF 1.67/ in 30 days, at the end of which the exchange rate is SF1.70/, then ABC Software ________.
 
  A) is required to follow through on a currency exchange
  B) has succeeded in hedging against exchange rate risk
  C) would exercise its currency option
  D) would not exercise its currency option


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upturnedfurball

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Reply #1 on: Jul 7, 2018
Answer to Question 1

Awesome job my friend

Answer to Question 2

Here to give you a feedback, your answer was right Awesome


cherise1989

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Reply 2 on: Jul 7, 2018
Excellent

alexanderhamilton

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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