Suppose that the value of a firm increases when the euro strengthens relative to the dollar, an appropriate hedge would be to
A) find another currency that is highly correlated to sell forward.
B) buy euros forward.
C) liquidate euro liabilities.
D) convert some of the firm's debt into euros.
Answer: D
Business
You might also like to view...
Process costing is not used when
a. similar goods are being produced. b. large volumes are produced. c. jobs have distinguishing characteristics. d. a series of connected manufacturing processes is necessary.
Business
Describe the three types of processes and the relationships between them
What will be an ideal response?
Business