The Firm That Enters into a Futures Contract with Respect

Multiple Choice

The firm that enters into a futures contract with respect to foreign exchange does so:

A) to speculate on the movement in the value of the currency
B) in anticipation of an increase in the value of the currency of the country for which the contract is established
C) to decrease the cost of their sales transactions
D) to eliminate a loss in the collection process of their accounts receivable in that country
E) none of the above