Which of the following reflects a hedge of net payables in British pounds by a U.S. firm? Group of answer choices a) purchase a currency call option in British pounds. b) sell pounds forward. c) borrower in US dollars, convert them to pounds, and invest them in a Britain. A and C
Which of the following reflects a hedge of net payables in British pounds by a U.S. firm? Group of answer choices a) purchase a currency call option in British pounds. b) sell pounds forward. c) borrower in US dollars, convert them to pounds, and invest them in a Britain. A and C
Chapter21: International Cash Management
Section: Chapter Questions
Problem 5ST
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Question
Which of the following reflects a hedge of net payables in British pounds by a U.S. firm?
Group of answer choices
a) purchase a currency call option in British pounds.
b) sell pounds forward.
c) borrower in US dollars, convert them to pounds, and invest them in a Britain.
A and C
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