Hedging: If a company expects to pay its European supplier million in six months, which financial instrument can they use to

lock in today's exchange rate?

Select one

A$.$ Forward contract

B$.$ Call option

C$.$ Put option

D$.$ Mutual fund

Question $83$

The accountants hired by Forever Fitness have determined total fixed cost to be $$75,000,$ total variable cost to be $$130,000,$ and

total revenue to be $$125,000.$ Because of this information, in the short run, Forever Fitness should:

Select one

A$.$ Shut down because staying open would be more expensive.

B$.$ Lower their prices to increase their profits.

C$.$ Stay open because shutting down would be more expensive.

D$.$ Stay open because the firm is making an economic profit.