Question
Mr. Sumant imported mobile handset parts for his mobile
assembling unit in Tamil Nadu from an exporter in China. He has to pay USD 1,00,000 to the exporter after 3 months. Mr. Sumant is interested in hedging the foreign currency exchange rate risk through options. Which of the following he should do to hedge his position?Solution
Since Mr. Sumant needs to buy dollar amount of USD1,00,000 after 3 months he may choose to buy a call option. A call option would give him the right to buy but not obligate him to buy the dollars at the exercise price mentioned in the option if it is in his favor after 3 months. Ass uch, by paying a small premium today, Mr. Sumant will be able to hedge his dollar payment to the exporter from exchange rate risk.
Match the following women with their achievements:
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Select the related word from the given alternatives.
Generous: Stingy :: Brave: ?
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Which film won the award for Best Picture at the 97th Academy Awards in 2025?
Which dam, located in Uttar Pradesh, is the largest earth-fill dam in India?
Which player won their 7th Blitz title in the 2024 Open Blitz Championship?
- In 2025, Anthony Albanese was re-elected as the Prime Minister of which country?
- Mount Etna, which erupted recently, is located in which country?
Haryana was carved out of which state in 1 November 1966?
