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CTP · Question #163

(Topic 2) A company expects the U.S. dollar to depreciate in value compared to the British pound. The company will have a British pound payment to make in five months. The company would MOST LIKELY…

The correct answer is C. a British pound call. See the full explanation below for the reasoning.

Question

  • (Topic 2)

A company expects the U.S. dollar to depreciate in value compared to the British pound. The company will have a British pound payment to make in five months. The company would MOST LIKELY buy:

Options

  • Aa U.S. dollar call.
  • Ba U.S. dollar put.
  • Ca British pound call.
  • Da British pound put.

How the community answered

(18 responses)
  • A
    11% (2)
  • B
    6% (1)
  • C
    78% (14)
  • D
    6% (1)

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