Currency futures may be purchased to hedge _ or to capitalize on the expected _ of...

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Question

Currency futures may be purchased to hedge _ or to capitalize on the expected _ of...

Currency futures may be purchased to hedge _______ or to capitalize on the expected _______ of that currency against the dollar.

receivables, appreciation

receivables, depreciation

payables, depreciation

payables, appreciation

business finance

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Answer 1

Answer #1

Ans payables, appreciation

Currency futures are purchased when we are required to pay the amount in the future. These are sold when the amount is receivable in the future.

These can also be purchased for capital appreciation. When the currency futures are purchased the investor is of the view that it will increase the capital of the investor.

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Answer 2

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		receivables, appreciation
		receivables, depreciation
		payables, depreciation
		payables, appreciation

Currency futures may be purchased to hedge _______ or to capitalize on the expected _______ of...

Homework Answers