Q293
Which of the following are rules to use when choosing between forward contracts and currency options?
A.
When the quantity of a foreign-currency cash outflow is known, buy the currency forward
AnswerB.
When the quantity of a foreign currency cash outflow is unknown, buy the currency forward
C.
When the quantity of a foreign currency cash flow is partially known and partially uncertain, use a forward contract to hedge the known and unknown portions
D.
when the quantity of a foreign currency cash inflow is known, buy the currency forward
Answer: Option A
Solution
Answer: Option A
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