B
bluetail
Member
Does anyone understand why the correct answer for Q1 is C?
my reasoning is it should be D because we want to have a put option to sell euros. so if the euro weakens, we'll be able to use the put option to fix the value of our receipt in australian dollars.
As for Q.6, it seems that the only sensible choice is A, but the logic here is not straightforward..i thought a high intrest cover as a ratio indicates the ability to generate enough cash to pay off debt i.e. it is a measure of liquidity itself.
my reasoning is it should be D because we want to have a put option to sell euros. so if the euro weakens, we'll be able to use the put option to fix the value of our receipt in australian dollars.
As for Q.6, it seems that the only sensible choice is A, but the logic here is not straightforward..i thought a high intrest cover as a ratio indicates the ability to generate enough cash to pay off debt i.e. it is a measure of liquidity itself.