Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

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

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.