On June 15, 2022 Company X imported a shipment worth 1 million dollars and will be delivered 3 months later (September 15, 2022), the current dollar price is 23, 800 VND/USD. The manager anticipates that the dollar price may fluctuate on the date of delivery. Should Company X go to the bank to buy a call option or a put option?.

RISK MANAGEMENT

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Buy put option
B	Buy call option
C	Buy swap option
D	Don’t buy anything

Explanation:

Detailed explanation-1: -The formula is: Starting Amount (Original Currency) / Ending Amount (New Currency) = Exchange Rate. For example, if you exchange 100 U.S. Dollars for 80 Euros, the exchange rate would be 1.25.

Detailed explanation-2: -US Dollar to Indian Rupee Exchange Rate is at a current level of 82.97, up from 82.59 the previous market day and up from 75.61 one year ago. This is a change of 0.46% from the previous market day and 9.73% from one year ago.

Detailed explanation-3: -Use the Currencies data type to calculate exchange rates Enter the currency pair in a cell using this format: From Currency / To Currency with the ISO currency codes. For example, enter “USD/EUR” to get the exchange rate from one United States Dollar to Euros. Select the cells and then select Insert > Table.

There is 1 question to complete.

BUISENESS MANAGEMENT

RISK MANAGEMENT