Your firm expects to receive 400,000 Swiss Franc in 60 days. You have a variety of hedging strategies to choose from. However, your manager needs to know the exact future payoffs for each hedge right now. Which of the following strategy(s) is not feasible?

	A.	Money market hedge
	B.	Forward contract
	C.	Futures contract
	D.	Options contract
	E.	All of the above

Question 24

1. Which of the following statement(s) is not true?

   	A.	Countries ranked high on the DHL Globalisation Index tend to have stronger economic growth.
   	B.	Foreign direct investment is a very accurate proxy for MNCs foreign business activities.
   	C.	Corporations with relatively large numbers of trade partners enjoy diversification benefits.
   	D.	International flows of money tend to co-vary with macroeconomic expansions and contractions.
   	E.	All of the above are not true.

Question 25

1. Which of the following is true for a call option?

   	A.	The higher the spot price relative to the exercise price, the higher the option premium.
   	B.	Options with longer expiration dates generally demand a high premium.
   	C.	Less volatile currencies have lower option prices.
   	D.	All of the above are true.
   	E.	None of the above are true.