Advanced Questions

1:

Suppose that Boeing is to receive payment in euros in 6 months and wants to engage in hedging. The firm would _____ euros on the 6-month forward market in order to protect itself from a/an _____ of the euro.

A.

sell; appreciation

B.

sell; depreciation

C.

buy; depreciation

D.

buy; appreciation

 

Answer : B

Explanation :

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Option: A

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