Hedging Techniques:- NO DEVICES ALLOWED

1. Hedging Techniques are widely used by

________________________ Companies.

2. _______________ is optimal technique to hedge receivables, when

the currency to be received has high probability of depreciation.

3. Companies that purchase hedging technique always gain from

hedging. – True/False

4. ____________ price is the exchange rate used in call option.

5. _____________ is paid to buy options from banks.

6. Difference between cost of hedging and cost of remaining unhedged

is __________

7. Banks always gain by selling hedging products. – True/False

8. Put option is optimal when your company is not certain about the

degree of currency fluctuation of receivables. – True/False