Answered

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Trading in foreign currency options would most likely be: __________

a. an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.
b. a multinational corporation.
c. someone traveling on vacation for two weeks abroad.
d. a firm in the import and export business.

Sagot :

Martebi

There are different kinds of trade. Trading in foreign currency options would most likely be an appropriate hedging tool for individual investors who want to hedge the risk on specific U.S. exchange-listed stocks.

Currency option hedges

  • Currency option hedges are known to be tools that are used in international business.

An example, when an American importer is said to agree to buy some food equipment from a Chinese manufacturer at a later future date. The transaction will be carried out in Chinese currency.

The American importer has therefore made an hedge by buing currency options on the Chinese currency.

Learn more about trade from

https://brainly.com/question/4957225

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