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Lapatulllka [165]
3 years ago
14

4.An important feature of a is that the holder has the right, but not the obligation, to buy or sell currency.(a)swap(b)foreign

exchange arbitrage(c)foreign exchange option(d)futures market contract
Business
1 answer:
Ratling [72]3 years ago
5 0

Answer:

(c) Foreign exchange option

Explanation:

Derivatives refer to those securities whose value is derived from the underlying asset. Examples being currency derivatives, commodity derivatives, etc.

Foreign exchange option refers to a derivative instrument whereby the holder has the right but not the obligation to buy or sell a currency at a future date at a  predetermined rate fixed today.

In a call option, the holder has the right but not the obligation to buy a currency while in a put option the holder has the right but not the obligation to sell a currency.

The predetermined price at which the holder can buy or sell a currency is referred to as the strike price or exercise price.

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<span>Its a diagnostic test
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3 years ago
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Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from
valentina_108 [34]

Answer:

d. .64.

Explanation:

Price elasticity of demand measure the responsiveness of demand against change in the price of given product. It measures the ratio of change in demand to change in price.

Change in demand = ( 2200 - 2000 ) / [ (2200+2000)/2 ] = 200 / 2100 = 0.0952

Change in price = ( 1.25 - 1.45 ) / [ (1.25+1.45)/2 ] = 0.2 / 1.35 = 0.148

Elasticity of Demand = Change in demand / change in price = 0.0952 / 0.148 = 0.643 = 0.64

6 0
3 years ago
Renata's US-based lifestyle company decides to invest in a company based in France that specializes in health and wellness. This
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People often make investments the health and wellness sector. This would be an example of foreign direct investment.

<h3>What is a foreign direct investment (FDI)?</h3>

This is known as a purchase of an interest that a firm is involved in. Here, the company by a company or an investor are found outside its borders.

The 3 types of FDI are;

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It is simply a business decision to get or buy a good amount of stake in a foreign business as in the case with Reneta.

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7 0
2 years ago
Eliminating _______ pushes idea creation and decision-making out of headquarters and into the field. none of these pay bonuses p
natima [27]

The correct answer is layers of management. Layers of management is defined as a centralized, bureaucratic organization structure by which it is composed of three levels of management that are; top-level, middle level, and first level managers that are less top level managers.

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3 years ago
At Afterbadge, a chain of stores that sells computer accessories, all the marketing activities are planned at the company headqu
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The correct answer is letter "B": Centralization of authority.

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