Suppose that you have a foreign currency receivable (payable). What option strategy places a floor (ceiling) on your domestic currency revenue (cost)?
What will be an ideal response?
Answer: If you have a foreign currency receivable, you eventually want to sell foreign currency. Purchasing the option that gives you the right to sell (a put option) provides a hedge that places a floor on your domestic currency revenue. If you have a foreign currency payable, you eventually want to buy foreign currency. Purchasing the option that gives you the right to buy (a call option) provides a hedge that places a ceiling on your domestic currency cost.
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A top-of-mind brand is:
A) the company's chief competitor, as identified by a competitive analysis B) the brand that comes to mind in a product category when asked to name the first brands a person can think of C) the most expensive good or service in a product category D) a purchasing alternative when the primary product is not available
A newspaper article reported on a lawsuit in which independent coffee shops accused a national chain of coffee shops of engaging in an illegal conspiracy to drive them out of business
What promotion element would the national chain of coffee shops most likely use to improve its corporate image, which has been tarnished by these accusations? A) sales promotion B) personal selling C) public relations D) direct marketing E) stealth marketing