Avoid the risk from exchange rate fluctuations

Assignment Help Operation Management

Reference no: EM132090590

1. If a U.S. firm needs 100,000 euros in 90 days and wishes to avoid the risk from exchange rate fluctuations, it could

a. purchase a 90-day forward contract on euros.

b. purchase euros 90 days from now at the spot rate.

c. sell euros 90 days from now at the spot rate.

d. sell a 90-day forward contract on euros.

2. Assume the Canadian dollar is equal to $.90 and the Argentine peso is equal to $.30. The value of the Canadian dollars is _____ Argentine pesos.

a. 0.25

b. 3

c. 0.3

d. 2

3. ____ is not a bank characteristic important to customers in need of foreign exchange.

a. Forecasting advice

b. Quote competitiveness

c. Size of loan department

d. Advice about current market conditions

Reference no: EM132090590

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